business plan for a gym

Gym Business Plan Template

Written by Dave Lavinsky

Gym Business Plan & Example

You’ve come to the right place to create a gym business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their gyms.

Gym Business Plan Example

Use the example below as a template to write a gym business plan.

Executive Summary

Business overview.

Steven’s Gym is a startup locally owned gym located in El Paso, Texas. Steven’s Gym will include various exercise equipment, strength training equipment, free weights, aerobic equipment, and plenty of cardio equipment. The gym will also offer HIIT group classes, spin classes, strength training instruction, and personal training.

Located in an up and coming, newly developed, and highly trafficked area of town, Steven’s Gym will attract both men and women ages 16 to 75+. There is something for everyone at Steven’s Gym, whether someone is just beginning their fitness journey or is a seasoned athlete and gymrat. The gym will have a welcoming atmosphere, experienced personal trainers, friendly staff, and frequently cleaned equipment and restrooms.

The membership options are affordable and will be offered on a month-to-month basis, a 6 or 12 month contract, or the ability to pay for an entire year upfront. Discounts will be offered to military, teachers, and healthcare workers.

Service Offering

The following are the services that Steven’s Gym will provide:

• Strength training equipment
• Cardio equipment
• Free weights/dumbbells
• Aerobic equipment
• HIIT group classes
• Strength training instruction

Customer Focus

Steven’s Gym will target all men and women ages 16 – 75+ who are interested in achieving and maintaining a healthy and active lifestyle. El Paso is a very diverse city that includes men and women from all walks of life. There are numerous blue collar individuals, white collar individuals, government employees, and military members as the local Army base is one of the largest in the country. Since Steven’s Gym will be very affordable, it will be able to attract people from all walks of life.

Management Team

Steven will manage the day-to-day tasks of running the gym. Steven will hire a gym manager to manage membership and three trainers. Steven will outsource a local CPA to handle payroll, accounting, and tax payments. He will also outsource a local advertising company to develop the gym’s logo, branding, photography, social media accounts, website, and billboard design.

Success Factors

Steven’s Gym will be able to achieve success by offering the following competitive advantages:

• Large, clean, and spacious fitness center that has all the necessary equipment for their fitness routine.
• Knowledgeable and friendly staff of trainers.
• Best value for membership pricing. The membership pricing options are affordable and offer military, teacher, and healthcare employee discounts.
• Convenient hours of operation.

Financial Plan Highlights

Steven’s Gym is seeking $300,000 in debt financing to begin operations of the business. The funding will be dedicated towards securing the warehouse space, gym build-out, and purchase of the equipment. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and working capital. The breakout of the funding is below:

• Securing warehouse space, gym build-out, and design: $25,000 to $125,000
• Gym equipment purchase: $50,000 to $100,000
• Three months of overhead expenses (payroll, rent, utilities): $15,000 to $55,000
• Marketing & advertising: $15,000
• Working capital: $10,000

Company Overview

Who is steven’s gym.

Steven’s Gym is a new, locally owned gym located in El Paso, Texas. Steven’s Gym will include strength training equipment, free weights, aerobic equipment, and plenty of cardio equipment. The gym will also offer fitness classes, strength training instruction, and personal training. Located in an up and coming, and highly trafficked area of town, Steven’s Gym will attract both men and women ages 16 to 75+. There is something for everyone at Steven’s Gym, whether someone is just beginning their fitness journey or is a seasoned athlete and gymrat. The gym will have a welcoming atmosphere, experienced trainers, friendly staff, and frequently cleaned equipment and restrooms. The membership options are affordable and will be offered on a month-to-month basis, a 6 or 12 month contract, or the ability to pay for an entire year upfront. Discounts will be offered to military, teachers, and healthcare workers.

Steven’s Gym History

Steven’s Gym is owned by Steven Malone, a retired Army Master Sergeant who is also a seasoned powerlifter. Steven was stationed at El Paso’s Fort Bliss for many years before eventually retiring and deciding to stay in El Paso and embark on his dream of eventually owning his own gym. As a frequent gym goer, Steven recognized that El Paso lacks high quality independent gyms. The nicest and most equipped gyms in El Paso are large franchises that have too many rules and regulations. Steven envisioned a gym that was welcoming to all types of people that is encouraging, clean, and adequately equipped for those who are focused on sustaining an active, healthy lifestyle.

Since incorporation, Steven’s Gym has achieved the following milestones:

• Found a 10,000 square foot warehouse space for lease in El Paso, Texas that can easily be converted to a gym.
• Registered Steven’s Gym, LLC to do business in the State of Texas.
• Began the branding image, logo, website, and social media accounts for the gym.
• Began researching and pricing out equipment.

Steven’s Gym Services

The following will be the services Steven’s Gym will provide:

Industry Analysis

The Gym industry is expected to grow to an annual revenue of $38 billion in the next five years. This growth is likely a result of increased per capita disposable income, in addition to growing health-consciousness. As consumers’ disposable income levels rise, individuals are usually more willing to purchase gym memberships. Additionally, time spent on leisure and sports is expected to increase over the next five years, effectively increasing the potential pool of consumers.

During this period, demographic changes are expected to drive revenue growth for operators. In particular, as healthcare costs continue to escalate, health insurance providers may implement incentives to promote preventive health practices, including the use of fitness centers among individuals within their provider network. Additionally, initiatives that promote the health benefits of exercise will likely increase over the next five years, stimulating industry revenue.  

Customer Analysis

Demographic profile of target market.

Steven’s Gym’s target audience will include all men and women ages 16 – 75+ who are interested in achieving and maintaining a healthy and active lifestyle. El Paso is a very diverse city that includes men and women from all walks of life. There are numerous blue collar individuals, white collar individuals, government employees, and military members as the local Army base is one of the largest in the country. Since Steven’s Gym will be very affordable, it will be able to attract people from all walks of life.

Customer Segmentation

Steven’s Gym will primarily target the following customer profiles:

• High school and college students
• Locally-based Military
• Athletes who frequently train for fitness competitions

Competitive Analysis

Direct and indirect competitors.

Steven’s Gym will face competition from other companies with similar business profiles. A description of each competitor company is below. Gold’s Gym Gold’s Gym is a large franchise-owned gym with two locations in El Paso. Gold’s Gym gives access to everything one needs to transform their life: state-of-the-art amenities, a variety of fitness classes tailored towards someone’s fitness needs, and the world’s best trainers. There are weekly fitness classes for group workouts ranging from martial arts-inspired cardio classes to foundational yoga sessions. There are also certified trainers if someone is new to exercise or just looking for more guidance and coaching. Gold’s Gym’s amenities include cardio equipment, group exercise, personal training, a pro shop, sauna/steam rooms, group cycle, free weights, functional training, kids club, locker rooms, and wifi.

Planet Fitness Planet Fitness is for people from all walks of life, whether they’re a first-time gym user or a veteran member, they are there to provide a workout environment in which anyone and everyone can be comfortable. All Planet Fitness members enjoy unlimited access to their home club and the support of their friendly, knowledgeable staff anytime they need it. PF Black Club members receive additional benefits, including the ability to bring a guest for free and access to any of their 2,000+ PF locations. Also, the PF member can take advantage of their free fitness training or find motivation by reading real member experiences on Planet of Triumphs. The goal of Planet Fitness is to provide a clean, safe, welcoming environment for anyone who walks through the door, and all the equipment, amenities, and support they need once they arrive.

Anytime Fitness Anytime Fitness is a welcoming gym that exists to help someone get to a healthier place – by giving the right support at the right times, in the ways the member wants. Every member receives a free, personalized Get Started Plan when they join. Their friendly, professional staff is trained to help someone along their fitness journey, no matter how much support they need. Aside from a large selection of strength and cardio equipment, Anytime Fitness offers the following services – 24-hour access, 24-hour security, convenient parking, anywhere gym access, private restrooms, private showers, health plan discounts, wellness programs, cardio TVs, and HDTVs.

Competitive Advantage

Steven’s Gym will be able to offer the following advantages over their competition:

• Large, clean, and spacious facility that has all the necessary equipment for their fitness routine.

Marketing Plan

Brand & value proposition.

Steven’s Gym will offer the unique value proposition to its clientele:

• Large, clean, spacious, and well-equipped facility.
• Dedicated team of trainers.
• Affordable membership pricing plans.

Promotions Strategy

The promotions strategy for Steven’s Gym is as follows: Social Media Marketing Strategy Steven’s Gym will invest in advertising the gym on social media platforms Facebook and Instagram. By using targeted social media marketing, Steven’s Gym will be able to reach the appropriate target audience of El Paso. Before opening, Steven will hire an advertising agency to develop the branding and photography needed to create captivating social media posts.

Billboards Steven will invest in two billboards strategically located at busy intersections that receive thousands of traffic daily. The advertising agency will develop the print for the billboard design. Website/SEO Marketing Strategy Steven’s Gym will invest in a strong SEO presence so that when someone enters “El Paso gym” or “local gym near me” in their Google or Bing search bar, Steven’s Gym is at the top of the list. Their website will list all of Steven’s Gym’s services, location, pricing, and contact information. Word of Mouth Word quickly spreads around town and once a few people experience the clean, affordable, and professional staff at Steven’s Gym, more and more people will come in to see for themselves and sign up for a membership plan.

The pricing of Steven’s Gym will be moderate and on par with competitors so customers feel they receive value when purchasing their services.  

Operations Plan

The following will be the operations plan for Steven’s Gym.

Operation Functions:

• Steven Malone will be the sole gym owner and operator of Steven’s Gym. He will oversee the staff, maintain that the cleaning schedules are being enforced, and ensure that all equipment is working per standard and safely. He will also manage all ordering of new and replacement equipment, schedule the group HIIT classes, and daily management tasks.
• Steven will hire a gym manager to be in charge of members and member management.
• A team of three trainers will run all of the fitness classes. As the membership grows and clients require more attention, more trainers and fitness classes will be added.
• A local CPA will manage all high level accounting functions, such as payroll and tax payments.
• Steven will also hire an advertising agency to develop the gym’s branding, photography, website, social media accounts, and billboard design.

Milestones:

Steven’s Gym will have the following milestones completed in the next six months. 8/1/202X – Finalize contract to lease warehouse space. 8/15/202X – Begin build-out and design converting warehouse space into a functional gym. 9/1/202X – Hire advertising company to begin developing gym’s branding, logo, social media accounts, website, and billboard design. 9/15/202X – Order all equipment. 10/5/202X – Hire gym manager and team of personal trainers. 10/15/202X – Train staff on proper policies and procedures. 11/1/202X – Grand Opening of Steven’s Gym.  

Steven’s Gym will be solely owned by Steven Malone. Steven is a retired Army Master Sergeant who has been stationed off and on at El Paso’s Fort Bliss for the past twelve years. Upon retirement, Steven decided to make El Paso his permanent home and embark on his dream of owning his own gym. Steven recognizes the lack of quality, independent gyms in El Paso and wants to open a gym that fits his idea of what a high-quality gym should be.

As a former powerlifter and personal trainer while serving in the military, Steven is aware of the proper equipment and facilities a gym should have. Steven envisions his gym to be friendly, clean, well-equipped, and affordable for the average person so that people from all walks of life will feel comfortable going to the gym and achieving their fitness goals. Steven will dedicate his life and focus on ensuring that his gym is always clean, staffed with the best trainers, and members are happy with what the gym has to offer.  

Financial Plan

Key revenue & costs.

The revenue drivers for Steven’s Gym are the membership fees it will charge each person that signs up to become a member. Each member will be placed on a membership plan where they can either pay month to month, enroll in either a 6 or 12 month contract, or pay for the entire year upfront.

The cost drivers will be the payroll for the staff, rent, utilities, cleaning supplies and equipment, and gym equipment purchase and maintenance. Other cost drivers will be the targeted marketing costs on social media and monthly fees for the CPA and advertising company.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Initial Number of New Clients per Month: 60
• Average Monthly Membership Fee: $150
• Gym Lease per Year: $100,000

Financial Projections

Income Statement

Balance Sheet

Cash Flow Statement

Gym Business Plan FAQs

What is a gym business plan.

A gym business plan is a plan to start and/or grow your gym. Among other things, it outlines your business concept, identifies your target customers, presents your marketing strategies and details your financial projections.

You can  easily complete your gym business plan using our gym business plan template here .

What Are the Main Types of Gyms?

There are many types of gyms or fitness centers. There are large, franchise gyms that have multiple locations across the country. There are also large single facility gyms. Finally, there are smaller gyms that tend to focus on a particular fitness segment, such as strength training, CrossFit, or group HIIT training.

What Are the Main Sources of Revenue and Expenses for a Gym Business?

The primary source of revenue for a gym or fitness center are membership fees. Typically, members pay month-to-month, or fulfill a year-long contract.

The key expenses for a gym or fitness center are the costs associated with payroll, purchase and maintenance of equipment, cleaning supplies, marketing costs, and working capital. Other expenses will be rent, utilities, taxes, accounts payable, and other licensing fees (if necessary).

How Do You Get Funding for Your Gym?

Gym businesses are most likely to secure funding from banks. Typically you will find a local bank and present your gym business plan to them. Family and/or friends could also be potential investors and other types of capital-raising such as crowdfunding are other common funding sources.

A well-crafted gym business plan, complete with a solid financial plan is essential for attracting any type of potential investor. This is true for a new gym business or established businesses looking to grow.

What are the Steps To Start a Gym Business?

Starting a gym or fitness center can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Write A Gym Business Plan - The first step in starting a business is to create a solid gym business plan that outlines all aspects of the venture. This should include market research on the fitness industry and potential target market size, information on the services and/or products you will offer, marketing strategy, mission statement, business model and pricing strategy and a detailed financial plan.  Our business plan template is the perfect guide to show you how to start a gym business plan.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your fitness   business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your gym business is in compliance with local laws.

3. Register Your Gym Business - Once you have chosen a legal structure, the next step is to register your gym business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your gym business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Gym Equipment & Supplies - In order to start your gym business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your gym or fitness   business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising to reach your target audience.

Learn more about how to start a successful gym or fitness business:

• How to Start a Gym Business

Where Can I Get a Gym Business Plan PDF?

You can download our free gym business plan template PDF here. This is a sample gym business plan template you can use in PDF format.

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Gym business plan: a checklist with templates & examples

In this article, you'll find a checklist of everything you need to know to create a business plan for your gym or fitness business.

If you've recently discovered an ambition to start a gym , or this has been your dream for years, we've got you covered!

The first step in your journey is to create a gym business plan. This will include understanding your business's structure, determining your target market and what sets you apart from other gyms (your unique selling point), forecasting future finances, and any further details about your venture.

Your gym business plan is the key to your success. It will help you make better decisions and attract potential investors. Creating a business plan is ongoing; it's not something you do once and then forget about. Your business plan should be flexible and adapt as you move forward. 

You have to consider many elements to ensure your gym will succeed. All stages of your business plan are critical. In this article, we'll be doing a deep dive into understanding the core essentials of creating a fitness business plan.

What is a gym business plan? 

A gym business plan is a document that informs the reader about your company and where it's headed. In other words, it answers essential questions such as:

• How does your business work?
• How are you going to succeed?
• What steps do you need to take to succeed?

According to research, entrepreneurs who write formal business plans are more likely to be successful . 

This is especially true for business owners seeking external financial support. A formal business plan can help new businesses by providing a clear focus for their ideas.

Why it’s important to have a business plan for your gym? 

Simply put, your gym business plan is an organized and detailed process that provides a roadmap for your business. If someone reads it – like a potential investor, for example – they should be able to understand how you expect the gym to progress and succeed over time.

Plus, putting together a business plan with detailed description forces you to take a critical look at your operation as it currently stands and identify room for improvement or new areas of opportunity altogether.

Depending on where your business is located, a well-crafted business plan can serve multiple purposes.

Keep reading for even more reasons you need a business plan from day one!

Taking advantage of a steadily growing industry

The gym industry is booming, allowing gyms to capitalize on this growth. In the US alone, over 87 million people regularly attend the gym and spend billions of dollars annually on membership fees.

And according to projections, the global gym market is expected to reach 434 billion USD by 2028 – a 171% increase from 2021! This steady growth provides room for gym owners to get in on the action and reap the benefits.

By having a gym business plan that considers the health & fitness industry as a whole, you'll be able to capitalize on this growth.

Ensures your business idea is feasible 

If you're considering starting a fitness business, know it will be complex. You have a fantastic idea and think it could take off--but how can you test that theory without launching the business? 

This is where a business plan comes in handy. By working through your concept and creating a well-rounded plan of action, you'll be able to figure out key details like numbers, market trends, and what your competition is doing and save yourself loads of time down the line.

It helps to bring in investors and secure funding 

To secure funding for your gym business from investors, you need a comprehensive business plan. This document helps startup businesses obtain the initial capital they need and provides established companies with funds for expansion.

Would-be contributors usually request substantiated data— such as numbers backed up by facts and figures—before deciding whether or not to invest in a project.

If you don't have a business plan, chances are slim that you'll receive money from sources like investors, banks, or other financial organizations outside your company.

Set and reach goals, both big and small 

Having long-term and short-term goals is a great start, but it's time to take the next step. A successful business plan will contain specific tactics on how you plan to achieve your objectives. 

This might be through your business model, acquiring equipment, hiring new talent, or marketing campaigns.

A successful business needs a clear plan to achieve its goals. Breaking down important goals into smaller, more manageable pieces would be best. 

And remember-- as your business changes and grows over time, so should your plan. Keep it updated regularly. 

Business planning is no longer a daunting task

A business plan is a vital tool for new and established businesses. It provides direction and helps to set the foundation for a successful start. 

By budgeting, analyzing your market, and setting out your goals and strategies, you can make more informed decisions about how to proceed. This process also makes it easier to track your progress over time and assess whether or not you are on track.

Something to consider before creating a gym business plan

Consider the cost of starting a gym. There are many potential expenses, such as equipment, personal trainers, class instructors, insurance policies, property fees, etc.

Also, consider how much time you are willing to invest in this venture – especially during the beginning stages when there is likely to be a lot of work involved in getting everything up and running smoothly.

It can be challenging to maintain a good work/life balance when starting any business; it will probably require working additional hours outside of your usual schedule.

Money and time are essential, but there are other things you need to be successful. 

People skills, marketing know-how, and financial smarts are essential if you want to succeed in the gym business world. It's not going to be easy, but it will be worth it if this is your passion. A solid plan is the first step toward making your dream a reality.

The 11 key elements of a detailed gym business plan

Before you develop your business plan, think about where you are and where you want to see yourself. Keep this vision in mind, as it will help guide you through writing your business plan. There will be countless opportunities wherein consulting your business plan will assist you in making a decision.

To create an effective health club business plan, you will need extensive research on your fitness industry, competitors, and future finances. 

Following these 11 steps, you can build an excellent gym business plan that covers all aspects of your health club.

Step 1: Executive summary

Your executive summary needs to be clear and concise while also grabbing attention. What you want readers to know is:

• Your mission/purpose
• How you'll achieve success (What will make you a success story?)

And finally, your vision for the future. Though it may seem tempting to hurry through this section because it is shorter than other parts of the business plan, don't rush! 

This is your chance to shine and explain what makes your company special. Don't worry if you feel like you have more to say about your goals and vision. You can expand on these topics in your company overview.

Step 2: Company overview

Your company overview is where you get to sell your gym and its potential. Build on your executive summary's vision and mission statement, delving deeper into what makes your gym unique. 

Think of your vision statement as a tagline for your future website. When outlining the purpose of your gym, which audience it will cater to, and how you plan to achieve business goals, also consider including the following: 

Your personal mission statement for the business- i.e., what outcome do you hope to see?

Then, give your readers some information on your background:

• What have you done in the past?
• Have you had any other businesses?
• What is your current status?

This is helpful for investors and partners to know so they can understand where you've been and where you're going. The more they know about you, the more trust they'll have in you.

Step 3: Services and amenities

Outline your strategy in detail: what services you'll offer and how you will develop new offerings. This includes if you need to hire someone or build a facility, such as a spa or a studio. 

This information will help you realize when or where your business requires more funding and extra staff.

By describing your products and services, you can gain valuable insights into your gym's size. Test your vision to determine if you have the necessary funding for these assets. If not, consider how you might acquire the required financing.

Some potential products you could invest in are: 

• Gym equipment like treadmills and rowing machines 
• Specialist equipment to cater to different types of gym-goers, such as bodybuilders 
• Food and drinks like energy drinks or healthy foods 

And services like: 

• Personal training sessions 
• Group classes like yoga, spinning, or body pump 
• Lockers for storing belongings while working out 
• Spa amenities like saunas or massages 
• A swimming pool 
• Physiotherapy

Furthermore, thinking about increasing your market share is a significant next step. You could start by offering pro bono services at local workplaces and schools, eventually introducing a fee.

This way, you can attract larger customers while still providing value.

When creating a business plan - be it for a gym or something else entirely - remember that its purpose is to lay out your objectives easily for potential bankers, partners, employees, and investors.

Step 4: Management team

It is essential to consider the positions you'll need to fill and how these people can help your gym succeed. 

You should write a summary emphasizing their skills and management experience while incorporating what they will be responsible for and any incentives you plan on offering.

Furthermore, creating an employee ladder is vital to establish who or what each new hire will report to so your business can secure its success.

Step 5: Market research and marketing strategy

Marketing is a field where creativity can shine. It's all about identifying different groups of people who would buy your product, coming up with reasons why they should choose you over others, and figuring out ways to get more sales.

Learn more:

Gym marketing strategy

Gym promotion ideas

Gym membership pricing

Best gym features

Even if marketing your fitness business isn't your favorite thing, remember that your marketing strategy will help you lay out a plan for expansion if you do it right. Your first target should be to summarise what you found in your market research. Are you still stuck? 

Consider where you are situated, similar businesses nearby, and who makes up the community around you.

Define your target market here. It could be

• Working professionals
• Senior executives

Or a particular group, like cyclists. After that, try to understand why this specific demographic would join a gym – for example, are they looking for cardio?

After you have completed your market research, take some time to understand your target audience. Ask yourself the following questions:

• How can I make this customer base loyal?
• What makes my company unique?
• What's the best membership package I can offer?
• Is there a need for special equipment or offerings?

In your plan, identify and communicate what makes your business valuable and unique. 

This is called a Unique Selling Proposition (USP), and it will help instill confidence in potential investors that they are making a wise choice by investing in your company. 

Furthermore, detailing marketing strategies in this document provides peace of mind that future income streams are lined up and secure.

There are many marketing strategies you can use to grow your business, including:

• Improving your services
• Advertising and sponsorship
• Loyalty plans and website promotions
• Email marketing campaigns
• Investing in new equipment or technology

Step 6: Competitor analysis - Understanding direct and indirect competitors

To do a competitor analysis, research businesses in your field that offer similar services. These are your direct competitors. 

You can mention indirect competitors, but this section is mainly for an in-depth look at businesses like yours. Depending on your business type, you could have brick-and-mortar and online rivals.

When investigating a competitor, these are some critical areas you'll want to focus on: 

• Services and products they offer 
• Target audience 
• Pricing and business model 
• Strengths and weaknesses

Step 7: Create comprehensive financial projections

Starting a gym requires careful budgeting. Make sure you consider every possible purchase and estimate the cost of each item.

The following are key areas to cover when starting your business:

• Lawyer fees
• Recruiting expenses
• Constructional endeavors
• Exercise equipment for the workplace
• Three months' worth of bills and other operational costs
• An accounting software

It's time to be practical and ascertain how much money you will need to open your gym and make it thrive. This way, you'll get a better understanding of what falls within your budget and what will require additional funding.

Next, you need to prove to investors, stakeholders, and employees that you have a feasible plan for attaining ROI. 

Consider revenue streams such as classes, services provided, and product sales- anything that brings in money. Set down an estimate here based on research and expert opinion.

If you're looking for ways to make money, selling healthy food could be a great option. You could create your protein shakes or energy bars, for example. 

If you plan to sell food, ensure you stay up-to-date with food hygiene standards.

Step 8: Financial forecasting

Your sales forecast for your business's first, second, and third years should be detailed. Specifying the number of active members, you estimate for your first year would also be beneficial. Estimate using:

• Unit sales per month
• Any relevant past data
• How purchases will be broken down (as specified in financial projections)

Step 9: Financial strategy

How can you use your fees in a way that will increase customer registration? For example, if all the other gyms in your area charge higher prices than average, this could be an opportunity to set your business apart by being financially conscious (lowering membership fees or having better offers than competitors).

Consider ways to show your appreciation for loyal customers, such as discounts or complimentary services.

Furthermore, if you're in the process of creating a gym and spa business plan, consider adding discounts for those who use both facilities. For example, many people would love to take advantage of the jacuzzi after working out.

Writing your pricing strategy down will help give you peace of mind about what's to come for your gym.

Step 10: Payment option

An easy and accessible payment system is crucial for any business, let alone a gym. To retain customers , ensure your payment processing is up-to-date and user-friendly. 

Let potential investors know what platform you're using or planning to use, so they can see that you're taking customer experience seriously. A positive buyer experience will encourage loyalty among your clientele.

Step 11: Funding

Make it clear where your business will obtain the extra startup capital it needs. 

This is a chance to be practical about your company. Can you realistically obtain the funding required to reach your targets? Or do you need to readjust your plan?

Below are some vital external resources that might provide the necessary funding:

• Loans from friends or family members
• Crowdfunding campaigns
• Business partners or sponsors

If you are looking to gain investors, be sure to detail where the funding for your project will come from and how much of a return they can expect. You should also include any previous loan applications related to this venture here.

You're almost there!

Now it's time to put all the elements outlined above into a gym business plan. This plan will be a reference point when you need to make tough decisions, help secure investment, and show direction to new employees or partners.

Your next steps to successfully run your gym

Here's a personal checklist to help you ensure that you have everything covered before you open your gym. Use it as a reference point throughout the development process to ensure nothing is overlooked.

• Write a business plan
• Register business
• Apply for a business license and permit
• Open business bank accounts
• Select an online payment platform
• Obtain taxpayer's ID
• Purchase insurance
• Rent/purchase facility
• Purchase/rent equipment
• Secure funding
• Recruit employees
• Drafting contract documents along with any other legal documents required
• Design company logo
• Develop website
• Write website content
• Create social media accounts
• Design leaflets & brochures
• Organize branded uniforms
• Launch party

Any business, no matter how big or small, comes with its fair share of challenges. However, the payoffs in the end always make it worth your while

Starting a gym can be an exciting and rewarding venture. However, it is important to ensure that you are well-prepared with all the necessary information before you open your gym. 

A comprehensive Gym Business Plan detailing the market research, financial projections and strategy, services and amenities, management team, and more should be developed to ensure success. 

Additionally, obtaining the necessary licenses, finding and hiring trainers, investing in the right equipment , and appealing to members with friendly incentives are all important steps.

Gym business plan template & examples

In addition, we've gathered a few of the gym business plan templates and examples below. These samples will provide you with suggested language for your own document as well as guidance on what to include.

Adam Fitness Centre

Grow think's template

PAWSitively Fit Club

Ecogym business plan

Capital Health and Fitness Club

Frequently asked questions on good gym business plan

How can i start my own gym business.

Follow these steps and understand gym business plans:

• Choose your area/location
• Develop a comprehensive business plan
• Apply and obtain all necessary licenses
• Find and hire certified trainers
• Invest in the right equipment for your business
• Appeal to members with friendly incentives

How do I write a business plan for a gym?

To write a gym business plan, you can implement the steps below:

• Executive summary
• Company overview
• Services and amenities
• Management team
• Market research and marketing
• Competitor analysis 
• Financial projections
• Financial forecasting
• Financial strategy
• Payment option

What type of gym is the most profitable?

Out of the gyms surveyed in November 2020, 69 percent of CrossFit gyms were profitable, while half of martial arts gyms reported being in the black.

Is owning a gym a good business?

Owning a gym can be profitable, but you will need more time to make yourself rich. To succeed in this industry, you must put in the effort.

Do gym owners make money?

According to ZipRecruiter, an American jobs marketplace, gym owners in the United States will earn an average of $69,472 annually as of June 2022.

Do gyms make a lot of money?

A gym that is managed efficiently and has a good mixture of members can generate quite a bit of money. For example, if a gym has 1,000 people paying $50 monthly, the gym could bring in $50,000 each month. And if the monthly expenses for the gym are $20,000 per month, the profit would be $30,000 per month.

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Gym Business Plan

2. Company Overview

The company overview section provides a more detailed description of your gym business.

It includes the legal structure, location, ownership, critical success factors, business history, and everything about your business.

First, provide the basic details of your gym including what is the name and what type of gym you are operating.

Mention the names of your gym owners/partners along with the qualifications. You can also include the business history(if any) and milestones you have achieved.

After that, describe your business goals to convey a high level of aspirations and vision that you want to achieve. Here is an example, describing the business goals and objectives:

Setting future business goals for a gym is a crucial step in outlining a clear path to achieve success and growth. The Stayfit Company’s goals and objectives include;

• Increase the client base by 100 customers within the first year of operation.
• Relocating to a large and more appropriate location facility by the first year of operation.
• Expand service offerings to provide a comprehensive fitness experience.
• Establish partnerships and increase brand visibility to become a recognized fitness brand in the community.
• Increase total memberships to 500 within 5 years.

Remember, this section gives an in-depth understanding of your business and business owners. So, make it clear and intriguing.

3. Industry and Customer Analysis

In the industry and customer analysis section of your gym business plan, it’s necessary to offer a comprehensive overview of the fitness industry and target market.

This section gives you a deep understanding of your industry and target customer attributes which will help you in business planning.

Here are some questions that will help you in the analysis:

• What is the current market size of the fitness industry in terms of revenue?
• What are the current trends in the gym business?
• Who are the target audience, and which customer segment do you wish to serve?
• What is the growth forecast for the gym business?

For example, look at this market segment and target market of the gym business with the help of Upmetrics:

As a gym owner, you can target the following customer profiles:

• Blue-collar employees (factories, warehouses, service industry)
• White-collar individuals(corporate or government employees)
• High school & college students
• Military members and their families
• Athletes who often train for fitness competitions

In short, a thorough industry analysis will educate you about the local market and help you prepare marketing strategies according to the market trends.

4. Competitor Analysis

This competitor analysis will help you understand the top competitors and identify the strong points of their service offerings.

As a gym business, you should make a list of the number of gyms or other fitness businesses operating in your locality, their size, and their customer base. Try to specify who are your direct and indirect competitors.

• Direct competitors can be other local gyms
• Indirect competitors can be another type of gym or fitness center, or health club in your area.

Now, let’s focus on your direct competitors and provide an overview of each competitor, including their size and where they’re based. Evaluate their strengths and weaknesses including their service offerings and pricing structures.

Refer below example; showing competitor analysis description:

A better way to conduct this analysis is by noticing things from a customer’s perspective. You might even ask your competitors’ clients what they like or dislike about them to get valuable insights.

This way you can understand what makes your competitors successful and what gaps you can fill. Also, consider the unique selling proposition of your gym business.

Specify your tactics to stay ahead in the competitive landscape and make all the difference in the local gym market.

5. Service Offerings

Next, specify the scope of your service offerings and elucidate how they meet the diverse needs of your clientele.

This section must be informative, precise, and client-focused, as it is a detailed breakdown of what your fitness business offers your customers.

You can include a comprehensive suite of services encompassing types of membership options, available exercise equipment, personal training sessions, group fitness classes, or nutritional counseling.

Here, you can take a reference from the below example written using Upmetrics AI Assistant :

Also, detail any membership fees or pricing plans in this section to add or revise services. Mention if your gym provides any additional services, like physical therapy, massage therapy, recovery modalities, etc.

6. Marketing Strategy

Writing the sales and marketing plan section means jotting down all the customer acquisition strategies and the tactics for how to retain them.

You can consider the following marketing approaches to gaining and keeping customers for your new gym business:

Unique Selling Proposition

Define your gym’s USPs depending on the market you serve, the gym equipment you use, and the unique services you provide. Highlight certified gym trainers, specialty programs, and regular community events.

Social media marketing

Use social media platforms to attract more users. Create engaging content and entice your audience with inspirational posts and special offers. Connect with your customers digitally as well as in the gym.

Establish a professional website and brand symbol (gym’s logo) to reach a wider audience. Showcase all your service offerings and build trust among potential customers.

Loyalty plans

Consider loyalty plans to retain existing gym members and encourage long-term commitment. Create membership tiers or referral programs to offer discounts or additional benefits.

Collaborations

Partner with local businesses (health food stores, fitness centers, or clothing brands), and fitness influencers to cross-promote services or offer collaborative discounts. That can expand your gym’s reach and draw a broader audience.

Offline advertising

Traditional offline marketing can still be effective in engaging with your local community. Clearly state your advertising strategies, including open bulletin boards, print marketing, flier distributions, or community events. For instance,

Consider following offline advertising strategies to reach specific demographics:

• Local Print Media: Advertise in local newspapers, magazines, or community newsletters to target residents in your area.
• Flier Distribution: Distribute flyers or brochures in strategic locations such as community centers, local cafes, or residential areas to raise awareness about your gym.
• Community Events: Sponsor or participate in community events, fairs, or health expos. This not only promotes your gym but also allows for direct interaction with potential members.

Pricing strategy

Try to develop detailed strategies, like offering special introductory discounts, free trials, seasonal promotions, or membership packages with additional services to attract and retain members.

7. Management Team

A strong management team is essential to showcase your gym’s ability to thrive in the industry. This management team section emphasizes the key members who can help grow your fitness business.

You can highlight your key managers, fitness experts, personal trainers, or nutritionists. Also, explain each member’s expertise and roles.

Also, discuss the compensation plan in this section, along with their salaries, incentives, and other benefits. For instance,

8. Operations Plan

This operations plan is like a map that shows how you will make your business work.

It provides detailed insights into the day-to-day operations of your gym and highlights key areas such as staffing and operational processes.

Consider adding below essential components to your operational plan:

Try to mention the number of trainers, support staff, and therapists needed. Briefly outline the duties they will perform and detail their qualifications & training required.

Operational Process

Summarize the processes and techniques you will use to run your gym. Your operational process section may include hosting fitness classes, assigning trainers, scheduling the group HIIT classes, billing, training staff, etc.

Equipment & Machinery

You can include the list of gym equipment and machinery required for the gym, such as strength training equipment, pull-up bars, cardio equipment, free weights/dumbbells, and aerobic equipment.

Refer to the below example written using our AI assistant:

9. Financial Plan

Presently, you are in the business planning phase, but devoting some time to putting together the most realistic financial projections is also crucial when you start seeking funding from investors.

It is a detailed blueprint of all the cash flow and revenue streams, initial startup costs for setting up your gym and equipment, profit margins, and operational costs.

So, mention all the below elements in your gym business plan outline:

• Profit and loss statement
• Cash flow statement
• Balance sheet
• Break-even analysis
• Business ratios
• Exit strategy

This financial forecast has a substantial value in terms of whether you secure funding or not. And evaluate the funding resources, including bank loans, SBA-guaranteed loans, crowdfunding, or personal savings.

Here’s an example of a projected P&L statement for a gym business plan with the help of Upmetrics:

Download Free Gym Business Plan PDF

Need help writing your gym business plan from scratch? Well, here you go; download our free gym business plan pdf now and start writing.

This modern, user-friendly business plan template is specifically designed for your gym business.

With a step-by-step guide and example, it helps you write a solid gym business plan without missing any crucial steps.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Start Drafting Your Plan with Upmetrics

With Upmetrics, you will get easy-to-follow steps, 400+ sample business plans, and AI support to streamline your business planning approach.

Our financial forecasting tool will help you develop accurate financial forecasts for 3 or more years if you’re not great with financial formulas.

Whether you’re venturing into a new business or aiming for expansion, Upmetrics provides valuable resources and insights to build successful and professional business plans that perfectly align with your objectives.

So, don’t wait; start planning now !

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Frequently asked questions, where can i find examples of successful gym business plans.

There are various online platforms where you can find sample business plan templates. Consider reputable sources like Upmetrics , which offers a successful gym business plan template for your specific needs.

What should I include in my gym business plan?

You should include the following key elements in your gym business plan:

• Executive summary
• Company overview
• Industry and market analysis
• Customer Analysis
• Competitor analysis
• Service offerings
• Marketing Plan
• Operations plan
• Financial plan

What are important gym location factors to consider when writing a business plan?

While writing a business plan, consider the following gym location factors:

• Easy accessibility and high visibility area
• Assess the availability of sufficient parking space
• Check and comply with local zoning laws and regulations
• Analyze the local demographics to align with the target market
• Evaluate the proximity of competitors

How often should I update my gym business plan?

It is very necessary to regularly update your gym business plan, especially in dynamic industries like gym & fitness. Consider updating it at least once a year or more often if there are significant changes in your business.

What are the common mistakes to avoid in a gym business plan?

Following are some of the most common mistakes you should consider avoiding when writing a gym business plan.

• Ignoring thorough market research
• Overestimating financial projections
• Neglecting competitors analysis
• Overlooking marketing strategy

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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How To Draft the Perfect Gym Business Plan

A good gym involves a lot more than just the right exercise equipment. You need to think of the type of clientele you’ll be serving, membership and subscription fees, hosting fitness classes, and finding new ways to make your gym stand apart from your competitors. Setting up a gym is by no means an easy task, which is why the best way forward is to start off with a gym business plan.

So what is a business plan?

It is a formal document that lays down who you are as a business and gives a realistic picture of where the business will go in the future. At a fundamental level – It is a document that shows exactly how your business works, how it’s going to succeed, and the steps you need to take to get there.

Do you even need a business plan for your gym?

Industries are now gradually clawing back to their pre-pandemic growth rate. Old enterprises are re-opening and new businesses are popping up faster than we can imagine. To new entrepreneurs, business plans are more of a formality that can be overlooked. But sometimes, undermining the importance of a strategic plan for the growth of your business can backfire.

According to a study , business owners who have a well-defined business plan have almost twice the probability of securing capital and growing their enterprise when compared to those who don’t. 

How will a gym business plan help you?

The primary purpose of a plan is to create a roadmap of how a gym will progress in the foreseeable future. Writing a business plan can be a useful exercise to help you discover fresh ideas which you might have missed and gauge if there is any room for improvement. While starting a gym, you can rely on your business plan for things like:

• Deeper assessment of the market : Making a business plan forces you to research the various aspects that will influence your gym’s success. These could include things like your ideal clients, target market, facility and equipment costs, local competitors, and any other market variables that could impact your business’ success.
• Choosing the right way forward: By getting ideas down on paper through various rough drafts of plans, you will be able to evaluate what has the best chance of success. This allows you to focus your time and energy wisely.
• Fund acquisition: Without a clear image of how the money will be used, no smart investor or lender will put money into a business. A good business plan lays out how the money will be spent and what the primary goals will be.
• Detailed mapping: Even though you have company goals in mind and rough ideas for achieving them, having your strategies written down is not the same as having them in your head. A good gym business plan will include thorough plans for marketing, resource allocation, hiring new staff, and other initiatives to help you achieve your objectives. It can assist you in understanding the scope of the fitness industry and determining the resources required to get started.

How do you go about writing one?

Creating a business plan is an organized and detailed process that helps you define the key metrics associated with your business. For this, you need to have a mindset that helps you to make strategic decisions while having realistic expectations . To begin with, ask yourself: 

• Where are you right now?
• Where do you want to be in the future?
• And, how do you envision yourself getting there?

Understanding the answers to these questions will put you in the right spot to draft the best possible plan for your gym. Generally, there are 2 types of business plan templates: 

• Lean start-up business plan ; and
• Traditional business plan .

A lean start-up business template highlights the key components of your strategy which allows you to view all the relevant details of your business in a single go.

However, having just a lean start-up plan for your business isn’t enough. Banks and financial institutions require extensive business plans as they can showcase an in-depth study of your business and how you plan to take it forward.

A compromise between the two might be the best for your gym . A lean business plan template could be useful for having an overview of your setup. There will be many occasions where you might need to refer to your plan for some important decision, and a lean business plan would be useful in those instances. On the other hand, a detailed gym business plan will be a necessity during fund acquisition, asset expansion, and internal guidance. So keeping both of these handy will not put you at a disadvantage, to say the least 🙂

The 9 key elements of a detailed gym business plan

Drafting a gym business plan is by no means an easy task. You have to strategize a plan of operation, dig deep into the market, run competitor analysis, project financial data for upcoming years, and collate everything in a single document.

We have established businesses that can be susceptible to changes, so owners of pre-existing gyms need to know about how they should update their business plans for future reference.

On the other hand, upcoming gym owners might not know what to include in their business plan, simply because this isn’t something people do on a daily basis. On top of that, they also have to keep their preparation for setting up their gym on track.

While all of that may seem a little overwhelming at first, it’s okay to work at your own pace and do your tasks one step at a time. You don’t have to learn everything at once. This is why, for your reference, we have put together a series of blog posts on:

• How to draft a gym business plan; and
• How to start a gym . 

Now that you have a fair idea of what a gym business plan means and how important of a role it plays in the growth of a gym, let’s look at its 9 key elements which will help you cover every single aspect of your gym without missing out on anything:

• Executive Summary
• Gym Business Overview
• Market Analysis
• Competitor Analysis
• Products and Services
• Sales and Marketing Strategies
• Management and Operation Plan
• Financial Projections
• Funding Requirements

We have also included a sample gym business plan for you at the end of this blog ( Click here to go right to it ) .

1. Executive Summary

Having a strong executive summary is crucial if you’re looking for investors or loan sanctions. If your first few pages aren’t compelling enough, potential investors or loan officers would find the document mundane, which is the last thing you would want! 

This section is basically a summary or an overview of the business plan. Give a brief description of your gym along with a summary of the market analysis that you have done. Then explain why your gym is uniquely qualified to fit in this market. Your executive summary should address the following questions:

• What is your business model and its strengths?
• What market demand will your gym fulfill?
• What key market data supports your concept?
• What is your competitive advantage?
• What will be your support line in terms of revenue, expenses, and profit/loss for the first three years?
• What are you requesting in terms of funding?

While you’re working on the executive summary, you might find yourself wanting to fill in more data than required, and it is important that you DON’T . The purpose of the executive summary is to highlight your goals for the gym and to give a very high-level understanding of the steps you will be taking in order to achieve those goals. You will have plenty of opportunities to fill in all the relevant information under the coming sections.

2. Gym Business Overview

This is a more detailed description of your gym, the clientele you serve (or the clients you hope to serve), and how it stands out from the competition. This is also a good place to include your goals for your gym

The executive summary captures the mission statement and a high-level understanding of the goals that you want to achieve. You can build on these points in your gym business overview to provide further detail. Try to cover:

• The purpose of your gym – Spreading awareness about maintaining good health, helping people stay fit, etc.
• Target audience ; niche-specific type of gym
• The founding details of your enterprise
• Strategies you will be adopting in different departments to achieve your goals
• The legal structure of your business

3. Market Analysis

Focus on writing about what your market is about and the specific niche your gym fits into. Think of things like:

• Do you have a niche?
• What kind of audience comes under this niche? 
• What are the current trends in the fitness industry? Do your business plans cover these trends and how compatible are these trends with your ideal clients?

Carefully examine your local market and your gym’s potential to fit into that market successfully. It’s a good idea to include some hard data and statistics to show where the market has been and where it’s expected to go.

4. Competitor Analysis

Research your competitors . You should make a list of direct and indirect competitors with their strengths and limitations, as well as how your gym compares to them.

• Direct competitors: This includes gyms similar to yours in the local area that are going after the same type of customer.
• Indirect competitors : These are the other types of gyms, health and fitness-based centers in your local area that target your market with different kinds of products and services.

You can talk to locals, hand out questionnaires, and do surveys to gain some insights. Ask them why they chose their current gym, what all do they think they are missing out on, and try to capitalize on that. Getting real-time information can be difficult but it is the most valuable feedback you can get . Collate the data under this heading and highlight how your gym can fulfill the wants of your potential customers.

5. Products and Services

This section is a detailed breakdown of what you offer to your customers. It should cover membership options, group classes, available exercise equipment, and personal training opportunities. You can also include child care options, or special training sessions, whatever fits your idea.

Discuss the needs that your services fill for your target audience. Use this section to detail any plans to add or change services, including the projected cost and payoff for those changes.

You could also explore opportunities to sell products. This can help you establish your brand and kick off an additional source of revenue. Ensure that if you plan to sell health food items, keep in check with food hygiene standards and include procurement sources and a budgeting overview. 

6. Sales & Marketing Strategies

Sales & marketing strategies are a key part of the fundamentals of funding plans and financial projections. These are highly dependent on market research and competitor analysis . Your marketing strategy can comprise of:

• Improving services
• Advertising
• Sponsorship
• Loyalty plans
• Website promotions
• Email marketing
• New equipment

There are no boundaries to your ideas here. It is very important to try and cover all possible bases because these strategies will help you maintain the rate of client acquisition and increase your client retention period. For an in-depth understanding, this section should address the following questions:

• What membership types will you offer and what will you charge for them?
• What are your sales forecasts?
• What is your strategy to get your target market into your club and convert them into members?
• What is your unique selling proposition?
• What promotional offers and marketing strategies will you use during pre-sale and post-launch?
• How will you retain your members?

It’s easy to overlook marketing strategies while doing extensive research on other things which constitute your business plan, which is why we’ve created a list of some simple, low investment, and high ROI gym marketing ideas. Check out this blog to learn about different ways to get more clients for your gym.

7. Management & Operations Plan

This is one of the most important sections of a business plan, while you’re in the phase of opening a gym because this will outline how your gym will actually function and what are the various moving parts involved.

Lay out the key members of your management team and the experience they can bring to help grow your business. This should not be limited to fitness experts and trainers you hire, but also people with business experience who will help you with administrative tasks. It is important to show any potential investors that the right people are in place to help your gym succeed.

If you plan on managing the club, include your bio alongside the rest of the management team’s profile in the appendix. Provide an organizational chart along with a description of any non-management staff you’ll need. They can include:

• Personal Trainers
• Sales/membership managers
• Storage handlers
• Customer service
• Maintenance personnel

Outside of rent, labor is the biggest expense for most fitness club operators, so having the right compensation is critically important. Break down your management and staff profile, along with their compensation and benefits plans. ( Xanax )

How you structure compensation and benefits will impact your ability to attract and retain a strong team and can make the difference on whether or not your business is profitable in the short and long term. So give these points and good thought before cementing anything in your plan.

8. Financial Projections

Include your financials for the most recent year, as well as your projected revenue for the coming years. These projections should be based on the solid market research you’ve done.

Create comprehensive financial projections that include income statements, balance sheets, and cash flow statements for the next three years based on the expected best and worst-case scenarios. Provide context for these numbers by comparing them to industry benchmarks. Start-up costs, payroll expectations, debt payment schedules are important to reference as well.

Make sure to consider membership and revenue-generating service ramp-up, membership churn, and staff compensation in your projections.

9. Funding Requirement

Use this as an opportunity to think realistically about your business. Include the key external resources you might consider to get funded. These could be:

• Personal savings
• Soft loans (family members, friends, gifts)
• Crowdfunding
• Sponsorship from other business

Detail exactly where you plan to get your funding from, and how much . If you’ve previously made loan applications, make a note of them here for any potential investor to consider.

Conclusion (+ Free template)

Starting a business has its own set of challenges, but the payoff is well worth the effort in the end. If you have a gym business plan that covers all you’ve learned so far, you’ll be able to kickstart a gym with a bang! Simply because your plan:

• Will act as a point of reference for you when you have to make important decisions.
• Be a resource to help you secure investment.
• Give you the security that you have explored all aspects of your new business.
• Show partners or new employees which direction you aim to head in.

Want a template to get you started? 

Check out this gym business plan template that we’ve created for you. 

Download the FREE gym business plan template!

Save it or print it out and use it to create a robust business plan!

Yay! You are one step ahead in a successful personal training business!

Every business is unique. So, don’t be afraid to tailor your own gym startup business plan that is specific to your needs.  Even though sample business plans are designed to assist you in creating the ideal presentation for your clients and investors, it is ultimately up to you to decide how you can best communicate your ideas.

About Appointy

We at Appointy, help business owners grow and run their businesses with our online scheduling software. This blog was a part of our ‘Manage your Business’ category, where we provide expert tips, and resources, or simply talk about the challenges that small and medium businesses face every day. 

If you have any thoughts on this blog or would like to chat about your business struggles and achievements, let us know in the comments below. 

We love a good talk!

Hi there!! As I have been reading going through on How to draft the perfect gym business plan. I then saw where it states check the template but there is no where to print or open. Please help

Hi Magellan! Please try adding your email and then click on the “Download!” button, you’ll find a printable PDF template.

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Gym Business Plan Guide – With Templates, Examples & Checklist

Published by caroline @ wellness creative co on 4 october 2022 4 october 2022.

Preparing a gym business plan can feel like a daunting task, but it doesn’t have to be. If you’re starting a health club , fitness center, or boutique studio, it can actually be quite easy to create a document that impresses banks and investors . All you need is a simple step-by-step guide… 

In this article – learn how to write an awesome gym business plan (with samples, PDF templates, and downloadable checklist).

• Essential elements of a business plan
• Why they matter
• Examples & templates
• Downloadable checklist

Key Elements of a Gym Business Plan

Planning a new venture can be an overwhelming task but our 7-step process makes it easy.

We’ll guide you through the exact steps to preparing a brilliant business plan to help secure gym funding. Following a proven format can help you access government grants for fitness centers or gym equipment loans.

Here are the sections that every gym business plan should include… 

• Executive summary
• Industry and local market analysis
• Company overview
• Products and services
• Sales and marketing strategy
• Financial information
• Implementation plan

Now let’s look at each of them in more detail…

1. Executive Summary

Get straight to the point – why should they invest in your business? Include your mission, key financials, and unique selling points. Although it goes at the beginning of your plan, you should do this section last.

2. Industry & Local Market Analysis

Demonstrate potential – show that the industry is growing and there’ll be a strong demand for your products or services. Include research statistics , competitor info, and relevant government initiatives.

3. Company Overview

Summarise the company – objectives, location, ownership, legal status, team structure, and operations.

4. Products & Services

The fun part – detail the names, descriptions , and prices of the products or services you plan to sell. This could be memberships, class passes, PT sessions, workshops, smoothies, merchandise, etc.

You might also like… How To Start an Online Fitness Business or Build a Successful Fitness Brand .

5. Sales & Marketing Strategy

How you’ll attract customers – explain your brand positioning and list all of the activities you’ll do to generate pre-opening sales, attract competitor customers, and promote your business once fully open.

6. Financial Information

Spreadsheets are your friend – potential investors aren’t just interested in your figures, but how you arrived at those figures, so show your calculations!

Include breakdowns of profit & loss, cash-flow, breakeven figures, and the capital expenditure needed for start-up. Project 12, 36, and 60 months ahead.

7. Implementation Plan

How you’ll make it happen – provide a step-by-step list of actions you’ll take, including milestone dates.

Why Business Plans Matter

Preparing a comprehensive business plan is hugely important. You’ll use it to secure a bank loan or investor funding so then there’s a lot riding on this one document.

It’s not just about putting ideas to paper – a fitness business plan needs to be well-structured and involves extensive research. But it’s well worth the effort as it sets you up for long-term success in the future.

“Business plans double your chance of success.”

Creating a business plan may seem like an annoying admin chore, but it’s crucial to the success of your business.

In fact, research shows that people who complete business plans are nearly twice as likely to successfully grow their businesses, or obtain capital. This is because they help you transform your fitness business ideas into a reality and ensure you’re profitable from the start.

You might also like… How To Write A Gym Marketing Plan [With Examples & Templates]

Fitness Marketing Ideas Mini-Guide

25 fitness marketing ideas for your gym, studio, or online business. Attract new members, get more PT clients & boost your fitness blog.

Gym Business Plan Examples & Templates

We’ve also collated a few of our favourite gym business plan templates below. These PDF samples will give you ideas for writing your own along with a guide to follow.

• Ibis World produced this thorough 60-page sample, which is a great source of financial projections.
• Launceston City Council created this aquatic center and health club business plan.
• Dragon Fitness Training produced this interesting personal trainer business plan as an academic exercise.
• Catalyst Fitness created this CrossFit business plan with a detailed risk assessment.
• The Yoga Lunch Box  offers a comprehensive yet easy-to-read yoga business template.
• Fitness Texter has a nice little guide that includes helpful questions to ask yourself.

Creating business plan is totally worth the extra time and effort. It’ll be your business blueprint for the next 3-5 years and help to secure bank loans or investor funding.

Putting some thought into how you’ll promote your services and manage cash flow will ensure you’re prepared for life as a business owner.

Downloadable PDF Checklist

We’ve found that the best way to approach a business plan is to work on it in small chunks . Trying to get the whole document done in one go is the quickest route to overwhelm.

Instead, we recommend working on just one section each day. This will enable you to complete the whole thing within a week, without stressing out .

To simplify the process, we created a  checklist  for preparing your business plan. It walks you through 7 simple sections that’ll result in a killer document, without the stress.

You can download it as part of our Fitness Business Template Bundle…  

Fitness Business Templates & More

Our ready-made templates make it quicker, cheaper, and easier to promote and run your fitness business. They can improve the effectiveness of your sales and marketing campaigns. If you aren’t an experienced marketer, then templates also provide a useful guide for you to follow.

Whether you run a gym club, fitness studio, or personal training business, these templates will save you time and effort. They’ll help you to plan and organize your promotional activities so that you generate more revenue . You’ll get 60+ templates covering sales, marketing, lead gen, client training, and business start-up resources.

Caroline @ Wellness Creative Co

Qualified personal trainer (BSc Sports Science) & nutritionist (MSc Human Nutrition) with 15+ years of fitness & wellness marketing experience working with global brands.

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How to Create a Flawless Gym Business Plan

Your gym business plan is your roadmap to success. It guides you on your journey, helps you to make better decisions, and attracts potential angel investors to your business. Creating a business plan is a process. It’s easy to think of your business plan as one single document that you build and then you’re done. But, your business plan evolves and changes with you; it’s not a static checklist. 

Whether you’re starting a new small business or expanding an existing one, a business plan sets the foundation for success.

A great gym involves more than fitness equipment. Setting up a gym is a big task which is why you want to give yourself the best opportunity to succeed. All stages of your business plan are equally important and essential for the final steps. In this article, we try to understand the core elements of a gym business plan and how you can craft a business plan for your fitness business. 

• What is a gym business plan? 
• Why do you need a fitness center business plan?
• 8 steps to create a great gym business plan 

What is a Gym Business Plan? 

Before we dive into how to create your business plan, let’s start at the beginning. So, what is a gym business plan? Well, it’s a document that tells the reader who you are as a business and a realistic idea of where the business is heading. At a basic level, your business plan answers the following questions: 

• How does your business work?
• How are you going to succeed?
• What steps do you need to take to succeed?

Research shows that entrepreneurs who write formal business plans are more likely to succeed . Business owners seeking external financial support are also more likely to commit their thoughts to a formal business plan. With a new business, it’s beneficial to pull your ideas into focus and put pen to paper. 

The 6 Crucial Steps to Opening a Gym or Studio

Why do you need a fitness center business plan .

The main aim of your gym business plan is to create a blueprint for your business. For instance, if a potential investor were to read your business plan, they would understand how your gym will progress and succeed in the future. Your business plan also helps you to identify fresh opportunities and see gaps in your current business model or setup. Depending on where your business is, a business plan can be dual-purpose. Here’s why you need a business plan from day one. 

1. Test Your Business Idea 

Starting a fitness business is by no means easy. So, you have an idea, and you think it could be a winner. But you can’t always go out and test that idea. A business plan allows you to feasibly test that idea without actually starting the business. Working through your idea and creating a business plan allows you to break down numbers, analyze the market and competitors, and save you a lot of time in the long run. In the early stages, it’s a good idea to work through your idea and create a business plan. The more knowledge you have about your business, industry, and potential customers, the better you can see if your business idea could be a success. 

2. Attracts Investors and Secure Funding 

If you want to attract investors, you need a business plan. Most businesses need to secure funding and seek outside financial support. A thorough business plan helps you to obtain startup capital and funding for your new gym business. Even established businesses often need extra funding for expansion and business growth. Potential investors and finance companies will need concrete numbers with facts and figures to move forward with your business. Without a business plan, there is little to no chance of getting funding from investors, banks, or other external financial institutions. 

Read More: How to Get Financing For Your Gym

3. achieve short-term and long-term goals .

It’s great to have both short-term and long-term goals in mind, but it’s important to go a step further. A good business plan will contain detailed strategies on how you intend to achieve these goals. It could involve your business model, equipment plans, hiring strategies, and marketing efforts. Think about everything that you need to do to achieve your goals. Most businesses tend to have overarching business goals that are supported by smaller goals. It’s crucial that your business plan maps out your strategies for achieving your goals. Because goals and strategies can shift, as your business evolves, you can update your business plan as necessary. 

4. Make business planning manageable 

A business plan is important for both new and established businesses. Firstly, a business plan gives you a higher chance of success. Budgeting, market analysis, and planning will set the foundation for a smoother beginning. When you have set out your goals and strategies to help you achieve them, you can implement what you need to progress. This whole process helps to make business planning more manageable and effective. A great business plan helps you to manage your business, monitor, and assess your progress over time. 

Chris Cooper, a gym owner, author, and the founder of the Two Brain Business offers expert insight into the proven formula for a successful fitness business . In an episode on The Fitness Founders Podcast, he talks about how gyms were forced to rethink their business models during the COVID-19 crisis and where fitness operators should spend their time and money to be successful. 

Read More: How ABC Glofox Can Boost Your Business

8 steps to create a great gym business plan .

Developing a business plan is an organized process where you go through specific steps to achieve a final result. To start, think about where you are now and where you want to be. This will help you get into the right mindset when writing your business plan. There will be many times when you will refer to your business plan to help you make a decision. So, the more information you have, the better. You will need to dig deep into your business idea, future finances, competitors, and fitness industry to help you collate the information together. By following these eight steps, you can begin to cover all the different aspects of your health club and start building a great gym business plan template. 

1. Executive Summary 

The executive summary is always at the top of the business plan. It should be an attention-grabbing business pitch that’s short and concise, yet interesting. You will continue to flesh out the points from your executive summary throughout the document. But this first section should be very clear and engaging. Although the executive summary is the first document in the business plan, it can be easier to write it at the end. Keep in mind what it should include so that you answer your own questions as you write your business plan. The executive summary should explain: 

• Who – who you are and what you offer. 
• Why – what you hope to accomplish. 
• How –  how you are going to get there, 

2. Company Overview 

The company overview is a more detailed description of your business. You go beyond talking about who you are and delve into the type of clientele you plan on serving, how your business stands out from the competition, and the goals of your business. Because gym business models can differ, now is a good time to explain how you will run your business in more detail. Your executive summary states your mission statement and explains your thoughts at a high level. As you go through your business plan, you have the opportunity to expand and build on your thinking to showcase your business. Your company overview can include: 

• Expand on the purpose of your business. 
• Business model and structure.
• Products and services you offer. 
• Target market research.  
• Founding story. 
• Legal structure. 

3. Industry Analysis 

The industry or market analysis is where you investigate the local market. Think about your niche, current trends in the market, and how your business aligns with market demand. You’re looking to evaluate the fit of your business in today’s market. Try to include some facts and statistics about your industry and the future of the market. For example, a gym looking to obtain funding for expansion into online fitness would include trends and statistics on the rapid acceleration of digital fitness and where the market is headed in the future. 

4. Customer Analysis 

Within the gym industry, there are various niches and audience segments. Even within one business, you can have multiple target audience personas. The customer base you choose to target will have a big impact on your business, the types of services you offer, and how you market yourself. Start by breaking your target customers down by the following: 

• Demographics – age, gender, income level, occupation, location, and education, etc.   
• Psychographics – needs, interests, opinions, beliefs, and values, etc.  

5. Competitor Analysis 

A competitor analysis investigates businesses that are direct competitors to you. These are the gyms that offer a similar service in your niche. Although you can mention indirect competitors, this section is mainly for a detailed analysis of your direct competitors. Depending on your business type, you could have both in-person competitors as well as digital-only competitors. Although it may be impossible to find out everything about a competitor, you can usually get a clear idea from your research. Break down each of your competitors into the following: 

• Services and products they offer 
• Target audience 
• Pricing and business model 
• Strengths and weaknesses 

6. Marketing Strategy 

The marketing section of your business plan is the place to explain everything you plan to do to get your services in front of your target audience. Include your strategy, projected startup costs, and consider who will be handling the marketing efforts of the business. Your marketing strategy can include: 

• Social media marketing 
• Advertising 
• Email marketing 
• Referral program 
• Sponsorships
• Partnerships 

7. Management Team 

Ideally, you and your team members have fitness experience within your niche. This section is a great place to highlight the skills, experience, and expertise of your management team. By doing this, it helps to show how specific team members will help you to achieve success. Lay out key members of your team. This doesn’t need to be limited to your fitness experts, but other experts who will guide your business like marketing and sales managers, customer service, and maintenance personnel. How you structure your business and the type of compensation and benefits you offer will help you to attract and retain high-quality talent over time. 

8. Financial Plan 

Depending on where you are with your business, your financial plan can include current financials for the most recent year and future projections. Your projected revenue should be based on facts and solid research with supporting numbers. The financial plan can include a five-year projection with detailed breakdowns of monthly and annual earnings. Think about your income, cash flow, costs, and outgoings. Your finances are the backbone of your business, so it’s important to be as thorough as possible. 

In Summary 

Starting a business is hard and comes with its own set of challenges. A good business plan gives you a point of reference to help you navigate your business. Whether you’re looking to expand your gym or start from scratch, a business plan covers all aspects of your gym so that you have every opportunity to succeed. While you may face some unforeseen issues, a business plan helps you to identify potential problems as much as possible. Your business plan isn’t a static document set in stone, instead, it can serve as a guide to growth and your future success through changing times. 

If you’re looking for a fitness business platform that can help you create a fitness franchise that will stand the test of time, ABC Glofox is the platform for you. Along with reducing your admin time by 20%, the ABC Glofox platform, on average doubles user revenue in just 18 months.

If you’re ready to take the next step in growing your fitness business, book a call with a member of our team today.

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Gym Business Plan Ultimate Guide + Free Example

July 6, 2023

Adam Hoeksema

There are numerous reasons why writing a business plan for your gym startup is essential, but the primary motivation for most founders is often the requirement of potential lenders and investors.

It's unlikely that you woke up this morning eagerly anticipating spending the next few days meticulously crafting a detailed plan for your business. If you're anything like me, the business plan is already conceptualized in your mind, and you're eager to dive into starting your gym rather than getting caught up in writing a comprehensive plan. Especially when there are several different types of gym business models and the variables change for each model.

However, it's crucial to acknowledge that the individuals with the financial resources you need—your potential investors and lenders—have requested your business plan and projections

So, if you find yourself in this situation, this article will provide guidance to help you navigate the following steps effectively:

Gym Business Plan Outline

• Conducting Market Research for Your Gym Business Plan
• Creating Financial Projections for Your Gym Business Plan

Example Gym Business Plan

Gym business plan faqs.

With that in mind as the path forward, let’s dive in. 

What Should be Included in a Gym Business Plan?

A gym business plan should effectively communicate to investors and lenders why customers would choose to join and regularly visit your gym, why you or your team are well-equipped to manage and operate the gym, and how the financial projections are tailored to secure a profitable financial outcome for their investment. Below is a comprehensive outline of our complimentary gym business plan template.

I. Executive Summary

A. overview of the business, b. key objectives and mission statement, c. market analysis and target customer, d. financial projections, ii. company description, a. background and history, b. ownership and management structure, c. legal structure of the business, iii. market analysis, a. overview of the fitness industry, b. identification of target market and customers, c. market trends and growth opportunities, d. competitor analysis, iv. service and product line, a. description of services and facilities offered, b. equipment and technology used, c. description of pricing and membership options, v. marketing and sales strategy, a. overview of marketing and advertising efforts, b. sales channels and customer acquisition strategy, c. marketing budget and expenses, vi. operations and management, a. description of day-to-day operations, b. overview of staffing requirements, c. management and leadership structure, vii. financial projections, a. overview of revenue and cost structure, b. projected financial statements, c. risks and challenges, how to conduct market research for a gym business plan.

Market research plays a vital role in developing a comprehensive gym business plan. It is crucial to gain a clear understanding of your position in the market and validate the demand for your specific gym concept, location, and pricing structure. You can delve deeper into our gym market research methodology here, but ultimately, In order to effectively conduct market research for your proposed gym, you can adapt the following strategies and tools:

Determining Advertising Costs for a Gym

To assess the cost of advertising for your gym and attract customers to your gym's website, we recommend using tools like Google Keyword Planner . This tool can help you identify relevant keywords that potential customers might use in their online searches. Additionally, it provides estimates of the cost per click for advertising with different keywords, as shown below:

Keywords Used in Customer Searches

To discover the keywords driving traffic to your competitors' gym websites, you can utilize tools such as Google Keyword Planner and Ahrefs . By analyzing reports on your competitors' websites, you can identify the keywords they rank for and the amount of organic traffic generated by each keyword. This information can guide your search engine optimization (SEO) efforts for your gym website.

Seasonality in the Gym Industry

Using platforms like Google Trends , you can assess the level of seasonality that might exist within your gym concept. For example, the graph below demonstrates that “gyms near me” in the United States is somewhat seasonal in nature. January is consistently the peak, with the late fall tending to be the low point of the season

How Many Customers Do my Competitors Receive Each Month?

To gain insights into the number of customers your competitors attract, it is beneficial to generate foot traffic reports for their gyms. This data can help you estimate the typical monthly visits for a specific location, as illustrated in the example below:

Understanding the potential customer base for your gym is a crucial factor in projecting your financial success. Analyzing competitor footfall can assist you in estimating the potential traffic to your gym, which will be a fundamental assumption for your financial projections.

How to Create Financial Projections for a Gym Business Plan

After conducting thorough market research, it's time to develop financial projections for your gym. One easy way to create financial projections is by using our gym financial projection templates which are designed to provide a solid foundation for estimating revenue projections by considering factors such as membership numbers and average class rates and more. While some gyms may be limited by the available workout space, others may have constraints related to the capacity of trainers or class schedules. Creating accurate financial projections is crucial to demonstrate your gym's potential to repay loans and offer attractive returns on investment to potential stakeholders. To accomplish this, you'll need to focus on the following key steps:

• Estimate startup costs for your gym
• Forecast revenue - either based on membership or class attendance
• Project labor costs
• Estimate your operating expenses like rent and utilities
• Calculate how much investor or loan capital you will need to open

By following these steps and utilizing our gym projection templates, you'll have a comprehensive financial outlook for your gym business, which will help attract potential investors and lenders while providing a roadmap for managing your gym's finances effectively.

Presented below is our gym business plan content. To help you create your own gym business plan, we offer a downloadable Google Doc version of our Gym business plan template here . This enables you to customize it to suit the specific needs and vision of your gym. We have also prepared a video walkthrough to guide you in adapting the business plan to align with your unique gym concept.

Table of Contents

Our gym, called "FitLife Gym," is a new state-of-the-art fitness facility that will offer a comprehensive range of exercise equipment, group fitness classes, and personal training services to members of the local community. Our mission is to provide a welcoming and supportive environment where people can achieve their fitness goals, regardless of their current fitness level or experience.

Our primary objective is to become the go-to fitness center for individuals in the community who are looking for a high-quality gym experience. We aim to differentiate ourselves from competitors by offering a wider range of services and amenities, including group fitness classes, personal training, and cutting-edge exercise equipment. Our ultimate goal is to create a supportive and inclusive community where members feel encouraged and empowered to reach their fitness goals.

The fitness industry has experienced steady growth in recent years, and we believe there is a significant opportunity to capture a share of the market in our area. Our target customer is primarily individuals between the ages of 25 and 55 who are interested in improving their health and fitness and are willing to pay for access to a high-quality gym experience. We also plan to target local businesses and organizations as potential corporate members.

Based on market research and our understanding of the local market, we anticipate that our gym will generate $500,000 in revenue in the first year, with a net profit of $60,000. We expect to see continued growth in revenue and profits in subsequent years as our business establishes itself and expands its offerings.

FitLife Gym was founded by a team of experienced fitness professionals and entrepreneurs who have a passion for helping people achieve their fitness goals. The founders have worked in the fitness industry for over a decade and have a deep understanding of what it takes to create a successful and sustainable gym business.

FitLife Gym is owned and operated by the founding team, who will also serve as the key management personnel. The management team will be responsible for overseeing day-to-day operations, developing and implementing marketing and sales strategies, and ensuring the overall financial success of the business.

FitLife Gym will be organized as a limited liability company (LLC), offering the founders the benefits of limited liability protection and the ability to raise capital more easily than a sole proprietorship or partnership.

The fitness industry has experienced steady growth in recent years, with the market expected to reach $96 billion in the US by 2026. The increasing emphasis on healthy lifestyles and the popularity of fitness and wellness have driven growth in the industry, and the trend is expected to continue in the coming years.

Our target market is individuals between the ages of 25 and 55 who are interested in improving their health and fitness and are willing to pay for access to a high-quality gym experience. This demographic is often seeking a supportive and inclusive environment where they can feel comfortable working out, regardless of their current fitness level or experience.

There is a growing trend towards boutique-style gyms that offer specialized services and amenities, and we believe this presents a significant opportunity for our gym to differentiate itself from larger, more traditional fitness centers. Additionally, the trend towards health and wellness is expected to continue, providing a stable foundation for continued growth in the fitness industry.

Our primary competitors will be other gyms and fitness centers in the local area, including large chain gyms and smaller, independent facilities. We will differentiate ourselves from these competitors by offering a wider range of services and amenities, including group fitness classes, personal training, and cutting-edge exercise equipment. We will also focus on creating a welcoming and supportive community atmosphere that sets us apart from other fitness centers.

FitLife Gym will offer a comprehensive range of exercise equipment, group fitness classes, and personal training services to members of the local community. Our facilities will include:

• Cardio equipment, such as treadmills, ellipticals, and stationary bikes
• Strength training equipment, including free weights and weight machines
• Group fitness classes, including yoga, spin, and high-intensity interval training (HIIT)
• Personal training services, with certified trainers available for one-on-one sessions
• A private stretching and recovery area, including foam rollers and resistance bands

We will invest in high-quality, commercial-grade equipment from leading fitness brands, including Life Fitness, Hammer Strength, and TRX. Additionally, we will utilize cutting-edge technology, such as virtual personal training and mobile apps, to enhance the overall gym experience for our members.

We will offer several membership options, including monthly and annual memberships, as well as corporate memberships for local businesses and organizations. Personal training services will be offered at an additional cost, with packages available for both one-on-one and small group sessions. Our pricing will be competitive with other gyms and fitness centers in the local area, with a focus on offering value to our members.

We will utilize a multi-channel marketing and advertising strategy, including:

• Social media and digital advertising, including targeted Facebook and Instagram ads
• Local print and online advertisements in relevant publications and websites
• Promotional events and partnerships with local businesses and organizations
• Referral programs for current members

Our sales channels will include online sign-ups, in-person tours and consultations, and corporate memberships for local businesses and organizations. We will also offer trial memberships and special promotions to attract new members and generate word-of-mouth referrals.

Our initial marketing budget will be $50,000, with ongoing marketing expenses accounting for 5% of our overall operating budget. We believe that a strong marketing presence is essential to establishing our brand and attracting new members, and we are committed to investing in a comprehensive marketing and advertising strategy.

Day-to-day operations at FitLife Gym will include tasks such as staffing and scheduling, equipment maintenance and repair, and customer service. The management team will be responsible for overseeing these tasks, ensuring the gym is running smoothly and efficiently at all times.

We will initially hire 5 full-time employees, including a manager, 2 certified personal trainers, and 2 customer service representatives. As the business grows, we may add additional staff as needed to meet customer demand and support the growth of the business.

The management team will consist of the founders, who will also serve as the key decision-makers for the business. The manager will be responsible for overseeing day-to-day operations and ensuring the gym is running efficiently, while the personal trainers will be responsible for delivering high-quality training services to members. The customer service representatives will be responsible for responding to customer inquiries, managing member accounts, and providing support as needed.

Revenue will come primarily from membership fees, with additional income generated from personal training services and corporate memberships. Our costs will include rent and utilities, equipment and supplies, staffing and salaries, marketing and advertising expenses, and general operating expenses. Our startup cost requirements will total around $600,000 which includes working capital to cover cash losses until break even as well as equipment and leasehold improvements. We will use an equipment loan, SBA loan, and personal investment to cover the startup costs.

Our projected financial statements, including income statements, balance sheets, and cash flow statements, will be based on our business model, industry trends, and realistic assumptions about membership growth and expenses. We project steady revenue growth over the next 5 years, with an estimated break-even point after the first 2 years of operation.

As with any new business, there are inherent risks and challenges that we must be prepared to face. Some of the key risks and challenges we anticipate include competition from other gyms and fitness centers, changes in consumer behavior and preferences, and unexpected economic downturns or changes in the local business climate. To mitigate these risks, we will focus on delivering high-quality services, building a strong brand and reputation, and maintaining a flexible and adaptive business model that allows us to quickly respond to changes in the market.

All of the unique financial projections you see below were generated using ProjectionHub’s Gym  financial projection template s. Purchase includes a gym membership and class-based gym versions. Use PH20BP to enjoy a 20% discount on the template. 

Projected Financial Summary:

Annual Sales, Gross Profit and Net Profit:

Key Financial Ratios:

Watch how to create financial projections for your very own gym:

Income Statement:

Balance Sheet:

Cash Flow Statement:

VIII. Conclusion

In conclusion, we believe that FitLife Gym has the potential to be a successful and profitable business, providing an innovative and community-focused fitness solution to the local market. With our extensive experience in the industry, passion for fitness, and commitment to excellence, we are confident in our ability to make this business a success.

What are the key components to include in a gym business plan?

A gym business plan should include sections on executive summary, company description, market analysis, target market and services, gym equipment and facilities, pricing and membership options, marketing and promotion strategies, staffing and trainers, and financial projections.

How can I choose the ideal location for my gym?

When selecting a location for your gym, consider factors such as accessibility, visibility, parking availability, proximity to residential areas or workplaces, competition in the area, and the potential to attract your target market. A convenient and visible location can help drive membership.

Do I need to provide specialized training or certifications for my gym trainers?

Providing specialized training or certifications for your gym trainers can enhance their credibility and expertise. Consider certifications such as personal training, group fitness instruction, or specialized programs (e.g., yoga, Pilates) to ensure your trainers are qualified to offer a wide range of fitness services.

How can I estimate the financial projections for my gym?

Financial projections for a gym should include estimates for start-up costs, monthly expenses (rent, utilities, equipment maintenance, staff salaries), projected membership revenue based on pricing and expected member count, additional revenue streams (personal training, classes), and a break-even analysis.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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BUSINESS STRATEGIES

How to start a gym business in 7 steps

• Jeremy Greenbaum
• Oct 31, 2023
• 10 min read

Are you passionate about fitness, enjoy creating a welcoming environment and love helping people achieve their health goals? If so, starting a gym could be the perfect business for you. In this guide, we'll take you through the process of starting a gym, from developing your concept to creating a business website and implementing effective marketing strategies. We'll also address the challenges that come with running a gym and provide actionable steps for overcoming them.

What is a gym business?

A gym business is a facility that provides fitness and exercise services to individuals. This type of business typically offers various workout equipment, fitness classes, personal training and sometimes additional amenities like showers and locker rooms. Gyms are designed to promote physical fitness, improve health and support individuals in achieving their fitness goals.

Why start a gym business?

Gyms have developed into more than just places to exercise—they have become integral to people's wellness journeys and social lives. The fitness industry is experiencing significant growth, with the demand for fitness services and facilities on the rise. In fact, by 2028, the fitness industry is expected to have grown 171.75% to $434.74 billion. As a gym owner, you have the opportunity to tap into this thriving market and make a positive impact on people's lives by starting this kind of a service business .

How to start a gym business

If you're passionate about fitness and ready to turn your dream of starting a business into a reality, here are seven helpful steps to lay a strong foundation:

Create a business plan

Select a business structure

Obtain financing or capital

Set up accounting and bookkeeping systems

Choose an appropriate location

Source gym equipment

Register, license and insure your gym

01. Create a business plan

Develop a comprehensive business plan that outlines your gym's mission, target market, competitive analysis, marketing strategies, financial projections and operational details. This plan will serve as a roadmap for your business and guide your decision-making process. To get started, check out our guide on how to create a gym business plan .

Once you've written your business plan, write a concept statement to outline your vision.

How this business owner turned her understanding of her target audience into a successful gym business

Raquel “Rocky” Harris knows a thing or two about kicking ass. She’s a five-time Muay Thai champion, Team USA gold medalist, Fight Camp trainer (that’s basically the Peloton of boxing)—and, most recently, a thriving entrepreneur (see our guide on how to become an entrepreneur). Harris now uses Wix eCommerce to sell a collection of wellness products to athletes like herself as the founder of Warm Up .

“I was making my own hand sanitizer and thought ‘why don’t they have sanitizers that kill fungus?,’” she says. “ There are always breakouts in boxing gyms due to common skin infections like ringworms. Tea tree soap is anti-fungal, so I started adding it to my hand sanitizers, which eventually evolved into my sweat butters.”

She launched her first product line while training clients and creating Wix sites for her colleagues, all while moving across the country to shoot workouts for Fight Camp.

02. Select a business structure

Choose a legal structure for your gym, such as a sole proprietorship, partnership , limited liability company (LLC ) or corporation . Consider consulting with an attorney or a business advisor to determine the best structure based on your specific needs, liability protection and tax considerations.

03. Obtain financing or capital

As you plan your gym, it’s important to explore different options to raise money for your business . These may include personal savings, loans from financial institutions, grants, partnerships or seeking investments from private investors. Research and prepare a solid business case to increase your chances of securing financing.

04. Set up accounting and bookkeeping systems

Establish accounting and bookkeeping systems to manage your gym's finances effectively. This includes keeping track of income, expenses, payroll and tax obligations. Consider using accounting software or hiring an accountant to ensure accurate record-keeping and financial management.

05. Choose an appropriate location

Selecting the right location for your gym is crucial to its success. Look for an area with high foot traffic, easy accessibility and sufficient parking. Consider the demographics of the surrounding population and the competition in the area. Lease or purchase a space that aligns with your gym's size, layout and amenities.

06. Source gym equipment

Research and source the necessary gym equipment to create a functional and appealing workout space. Determine the types of equipment based on your target market's preferences and fitness goals. Costs will vary depending on the brand, quality and quantity of equipment. Create a budget and compare prices from different suppliers to find the best value. Keep in mind, proper maintenance and regular equipment inspections are essential for the safety and longevity of your gym equipment.

07. Register, license and insure your gym

Before you apply for your licenses and permits, you’ll want to make sure you have a solid name for your business . Consider using a business name generator for inspiration. Once you’ve settled on a name, you can move on to registering your business with the appropriate government agencies and obtaining the necessary licenses and permits. This may include registering your business name, obtaining a tax identification number and securing health and safety permits. Additionally, you’ll need to obtain the right insurance coverage, such as liability insurance, to protect your business and members in the event of accidents or injuries.

Be inspired: Gym business name ideas , Fitness business name ideas

What to keep in mind when managing your gym business

Opening and managing a gym effectively requires careful planning and attention to detail. With this in mind, we recommend focusing on the following areas.

Inventory management

Keeping on top of your inventory management is key. Regularly assess inventory levels and reorder necessary supplies to avoid shortages. This includes doing your due diligence to make sure you’re getting the best deals on supplies. These items can quickly add up, chipping away at your profit, so be intentional about sourcing to make sure you don’t get stuck overpaying. At the same time develop a system for tracking and managing inventory, such as exercise equipment, cleaning supplies and amenities.

Technology and software

Be sure to deploy technology to your advantage when managing your business. You can implement management software to streamline back-end and front-end operations, such as membership management, class scheduling and payment processing. At the same time consider integrating your POS system with inventory and CRM tools for seamless data synchronization, efficient reporting and improved customer service. Wix's POS solution does just this.

You can also make a website that has specific templates and features for gym owners like fitness program information, class schedules and online reservations. Check out Wix’s Gym Website Templates , or these best fitness websites for inspiration.

Quality assurance

Make sure that your gym is a clean and welcoming environment that customers will want to return to. In order to ensure this you’ll need to develop and enforce cleanliness and maintenance protocols to ensure a safe and hygienic environment. If equipment is broken or not properly maintained, it can not only be an inconvenience for your members, but can be dangerous as well, so you’ll need a maintenance process to tackle this. At the same time, seek feedback from your gym members and address any concerns promptly to maintain a high level of customer satisfaction.

Employee training and procedures

Prioritize providing comprehensive training to employees on gym operations, safety procedures and customer service. This should include clear guidelines and procedures for opening and closing the facility, managing memberships, handling inquiries and resolving member issues.

Be sure to also conduct regular training sessions to keep employees updated on new equipment, fitness trends and customer service best practices.

Can opening a gym business be profitable?

Yes, opening a gym business can be profitable. In fact, the gym industry is a multi-billion dollar industry, and it's expected to continue to grow in the coming years. However, it's important to note that not all gym businesses are successful. There are a number of factors that contribute to the success of a gym business, including the location of the gym, the services offered and the management team.

Here are some tips for increasing the chances of profitability for your gym business:

Choose a good location. Your gym should be located in a convenient area with high visibility.

Offer a variety of services and amenities. This will help appeal to a wider range of customers.

Keep your gym clean and well-maintained. This will create a positive experience for your customers.

Hire qualified staff. Your staff should be knowledgeable about fitness and customer service.

Market your gym effectively. Let potential customers know about your gym and the services you offer.

How much does it cost to open a gym business?

The cost to open a gym business can vary depending on a number of factors, such as the size of the gym, the type of equipment purchased and the location of the gym. However, in general, you can expect to spend between $200,000 and $500,000 to open a gym business.

Here is a breakdown of some of the typical start-up costs for a gym business:

Lease or purchase of a commercial space: $50,000-$200,000

Purchase of commercial washers and dryers: $50,000-$100,000

Purchase of other equipment, such as folding tables and chairs: $5,000-$10,000

Signage and marketing: $5,000-$10,000

Permits and licenses: $1,000-$5,000

Working capital: $25,000-$50,000

Total start-up costs: $200,000-$500,000

There are a number of ways to reduce the start-up costs for a gym business. For example, you can purchase used equipment, lease a commercial space instead of purchasing it and start your gym business on a part-time basis. You can also seek out funding from investors or lenders.

What to keep in mind when promoting your gym business

Promoting your gym is essential to attract new members and build a strong customer base. Here are five tips to get your business out there and noticed.

Consider attending local community events, fitness expos and industry conferences to network with potential customers, suppliers and other business owners. Take this a step further and collaborate with local fitness influencers or trainers to host special events or workshops at your gym. You can also connect with local businesses, such as coffee shops or restaurants, and explore opportunities for partnerships or cross-promotion. Build on these external promotions by offering referral programs or incentives for current members who bring in new members, via word-of-mouth marketing.

Marketing strategies

In order to promote your business you’ll need to develop a comprehensive marketing plan that includes both online and offline strategies (and if you are already passionate about marketing, check out how to start a marketing business ). Potential online marketing efforts include digital marketing techniques like search engine optimization (SEO), pay-per-click (PPC) advertising and email marketing to reach a wider audience online.

You can also consider offline advertising options including local radio, television and print media, as well as outdoor signage and direct mail campaigns.

A branded website

When it comes to starting any kind of business, making a website is essential in terms of effective promotion and management. You’ll need a professional and user-friendly website to showcase your gym's facilities, services and membership options. Utilizing a website builder like Wix to easily create and customize your gym's website without extensive technical knowledge is a great way to build a professional site fast when you're in the throes of starting a fitness business . You can additionally use Wix’s logo maker to create a logo that you can feature in all of your digital assets. Check out these fitness logo ideas for inspiration.

Social media

Social media is an important part of promoting businesses, especially gym businesses. Consider creating on popular social media platforms like Instagram, TikTok, Facebook and YouTube to reach a wider audience and build a community around your gym.

The next step is then to share engaging content such as workout tips, success stories, member spotlights and behind-the-scenes glimpses to encourage interaction and attract potential members. Furthermore, you can run social media campaigns and promotions, such as free trial passes or exclusive discounts, to incentivize engagement and generate interest.

Examples of gym businesses on Wix

Gymshare : Gymshare is a home gym-sharing platform. Skip the lines and enjoy total privacy in one of Gymshare’s fully vetted at-home gym set-ups.

Impulse Fitness : Impulse Fitness is a 24/7 access gym, fully equipped with top of the line equipment and an awesome group of members. They offer one price memberships that include unlimited classes for a LOT less.

In Awe Fitness : In Awe Fitness is a ladies only health and wellness group fitness studio. They offer group classes that cater to all levels of fitness—whether you're just starting out or you're looking to take your fitness to the next level.

Classic Bodyworks Gym : Classic Bodyworks is a family owned and operated “old school” gym since 1995. They offer members 24 hour access, free babysitting and a highly certified personal training staff.

Benefits of starting a gym business

In summary, as the owner of a gym business, you’ll get to:

Be the architect of your success: You have the freedom to shape your business according to your vision. From selecting the equipment and classes to creating a unique atmosphere with music and décor, you have the opportunity to build a gym that aligns with your goals.

Create a supportive community: Gyms serve as more than just fitness centers; they foster a sense of community and provide a space for individuals to connect, motivate each other and achieve their fitness goals together. If you have a passion for connecting people, starting a gym could be a fulfilling endeavor.

Realize profit potential: With the growing interest in fitness and wellness, there is significant profit potential in the gym industry. By offering quality services, diverse workout programs and excellent customer experiences, you can attract a loyal clientele and generate sustainable revenue.

Build a flexible schedule: Running a gym provides flexibility in terms of working hours and the ability to choose your hours. You can find the sweet spot between a schedule that suits your lifestyle and caters to the needs of your clients.

Challenges of starting a gym business

While starting a gym can have numerous advantages, there are also several challenges to consider:

High startup costs: Establishing a gym requires a significant investment in equipment, facility renovations, lease or purchase costs and initial marketing expenses. It's important to carefully plan and secure sufficient startup capital and funding.

Equipment selection: Procuring the right gym equipment that meets the needs and preferences of your target audience can be challenging. It's crucial to conduct thorough research, consider space limitations and invest in high-quality, durable equipment.

Attracting and retaining members: In a competitive market, attracting and retaining members can be a challenge. Effective marketing strategies, excellent customer service and providing a unique and valuable experience are essential to stand out from the competition.

Staffing and management: Hiring and managing qualified staff—including trainers, instructors and administrative personnel—can be demanding. Ensuring their expertise, professionalism and commitment to delivering a positive customer experience is crucial.

How to start a gym business FAQ

Is a gym a good business to start.

Whether or not a gym is a good business to start depends on a number of factors, such as your experience, budget and the market in your area.

If you're passionate about fitness and have experience in the fitness industry, then owning a gym may be a good business for you. However, it's important to do your research and develop a solid business plan before starting a gym.

You should also consider the market in your area. Is there a high demand for gym memberships? Is there a lot of competition? Answering these questions will help you to determine if starting a gym is a good business decision for you.

How profitable is owning a gym?

How to start a gym business with no money, is it hard owning a gym, how to start a business in a specific state.

If you're looking to start a gym business in a specific state, here are some helpful resources:

How to start a business in South Carolina

How to start a business in Michigan

How to start a business in California

How to start a business in Arizona

How to start a business in Texas

How to start a business in Maryland

Don’t see your chosen state here? You can use the search bar in the Wix Blog to find all the information you need.

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How to create a gym business plan

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How to Create a Business Plan for Your Gym

Crafting a gym business plan that prioritizes modern technology can help your new fitness business succeed.

A passion for fitness alone isn't enough to open a gym. If you want your business to thrive, you must create a roadmap for success. Gym business plans outline your business's goals and strategies to help you reach those goals, providing a structured framework for decision-making, resource allocation, and long-term growth.

Let’s explore everything you need to know to craft a successful business plan for your gym.

Why Do You Need a Gym Business Plan?

Writing a business plan can feel daunting, and you may wonder if it's worth the time and resources. While you may feel overwhelmed now, pausing to plan offers significant benefits.

Improves Success

A well-thought-out business plan improves your chances of success and accelerates growth. Studies show that entrepreneurs with formal business plans are more likely to succeed .

Additionally, companies with well-developed plans grow 30 percent faster than those without. Why? A strategic business plan creates a path toward achieving important milestones. It outlines specific strategies, timelines, and measurable targets, enabling you to track progress and adjust as needed.

Helps Secure Funding

Whether you're seeking a loan or attracting investors, a comprehensive business plan is essential to secure funding for your gym. Potential investors and banks typically require a business plan that includes market data and opportunity, a high-level marketing and growth plan, and projected costs and revenue.

Crafting Your Gym Business Plan With Modern Technology at The Forefront

With over 32,000 United States health clubs vying for members, new gyms must incorporate modern technology in their business plans to outperform their competitors.

"Technology spans nearly every element of the modern gym environment," says Randy Hetrick, Founder and CEO of OutFit Training. "From member acquisition, utilization, and retention analytics to scheduling, billing, goal setting, program design, biometric analysis, and more – technology touches nearly every aspect of a modern club."

In today’s rapidly evolving fitness landscape, adopting a tech-forward strategy isn't optional; it's a necessity.

Benefits of a Tech-Driven Business Approach

Improves member retention.

Providing a location to pump iron and break a sweat isn't enough to retain members. In fact, most gyms lose 50% of new members within six months of joining. Today, gym goers demand more than just equipment. They want a seamless experience that takes their fitness to the next level. Incorporating modern technology, such as personalized workout apps, virtual classes, and progress tracking, enhances your member's experience and improves retention.

Streamlines Operations

Repetitive administrative tasks are a time suck for gym owners. Ditch the spreadsheets and opt for a more efficient gym management strategy by investing in gym management software. Gym management software streamlines fitness facility operations by centralizing tasks like member registration, class scheduling, and billing. It also automates routine processes, like membership renewals and payments, reducing administrative work and minimizing errors.

Diversifies Revenue Streams

The demand for online exercise courses has increased 132% year-over-year. This trend presents opportunities for gym owners interested in diversifying their revenue streams and bringing in more money.

Offering virtual workouts caters to individuals who may be too busy to visit the gym every day. It can also help boost in-person attendance by 12%. This means not only meeting the needs of those who prefer the flexibility of virtual workouts but also encouraging more people to show up at the gym when they can. It’s a win-win situation for gym owners looking to adapt to changing preferences and attract a broader audience.

The Core Components of a Tech-Driven Gym Business Plan

Now that you understand the importance of a business plan and technology's role in helping your gym thrive, let's explore the essential elements aspiring entrepreneurs should include when crafting their strategies.

Executive Summary

Your executive summary serves as a bird's eye view of your gym, providing insights into your business model at a glance. This section introduces your business idea to readers and includes your mission statement, goals, leadership, operations, and locations.

Products and Services

This section outlines the range of products and services your gym will offer. Here, you should provide pricing information and detail your services' unique features and benefits, emphasizing how technology will enhance the overall fitness experience for your members.

Market Analysis

If you want to turn your dreams of gym ownership into a reality, you need to understand consumer behaviors in your area and economic trends in the fitness industry. In this section, delve into your local market, identifying target demographics, competitors, and potential growth areas. Analyze the demand for tech-driven fitness solutions and showcase how your gym is positioned to meet and exceed these market needs.

Marketing Strategy

This section should detail your marketing strategy, outlining how you plan to promote your gym and attract members. Include both traditional and digital marketing approaches, like social media marketing. A well-crafted marketing strategy will include strategies for building brand awareness, promoting special offers, and fostering community engagement.

Financial Projections

This section should outline your gym's financial planning and projections. If you already own a fitness business, include your financial statements from the previous two years, a listing of current or desired equipment to be purchased, and other relevant financial documents.

Aspiring gym owners should provide detailed financial projections, including revenue forecasts, expense estimates, and expected profit margins. If you need funding, include details about the financial assistance your gym will require. Most likely, you already know your business growth path. Demonstrating that growth path to third parties will help you unlock the funding you need to spur things into action.

The Importance of Financial Forecasting

Opening a gym is not for the faint of heart. Industry professionals estimate that 81% of fitness studios fail in their first year. This failure rate is often due to insufficient funds. If you want to avoid becoming a negative statistic, it’s essential to have a realistic financial plan in place before you open. Financial projections can help establish a budget and create benchmarks toward achieving your gym’s financial goals.

Creating Data-Driven Financial Projections

Financial projections predict the future income and expenses of your gym. This information helps you anticipate financial needs, set realistic goals, and demonstrate your business’s viability and potential success to investors.

Steps to Create a Financial Projections

Collect relevant data.

Established gyms can consult their historical data, like past financial statements, when crafting their financial forecast. However, aspiring gym owners with no historical data must conduct more research. Helpful data to explore when creating financial forecasts includes comparable market research (local and national), industry benchmarks, and analyst reports.

Forecast Expenses

Typical gym expenses vary widely from facility to facility. Opening a gym can cost anywhere from $50,000 to $1 million. When creating your financial forecast, consider the cost of opening a gym and ongoing operational expenses like staff salaries, insurance, the cost to lease property, and marketing.

Forecast Sales

Make a list of your planned revenue streams and project the monthly sales for each. Possible revenue streams for gyms include memberships, merchandise, digital classes, and personal training. Use the data you collected at the beginning of this process to make sales predictions. Remember that revenue tends to ramp up over time, so include a reasonable growth rate for revenue, start at $0, and build into what you believe is realistic.

Forecasting Profit

To forecast your net profit, compare how much money you plan to spend on the business with your predicted revenue. Demonstrating a path to profitability will show your lenders or investors (and most importantly, yourself) that your gym can be a successful and profitable operation.

Innovative Marketing Strategies for the Modern Gym

You could have talented trainers, high-tech equipment, and unique classes, but if no one knows your gym exists, you won't stay open long. including a comprehensive marketing strategy in your business plan is essential to attract new members. this strategy should include a variety of digital channels and outline what techniques you plan to utilize to reach your target audience., create a well-designed website.

Today's consumers expect businesses to have a website. Nearly everyone conducts online research before making a purchase. If you want to be on your target audience's radar, you must provide them with the opportunity to learn about your gym online.

If it's in your budget, we recommend working with a website designer. Poorly designed websites can do more harm than good, driving away potential customers. Skilled website designers will ensure that your website looks professional and is easy for users to navigate.

Optimize for Search Engines

Many business owners think having a website is enough to get discovered. However, creating a professional-looking site is just the tip of the iceberg. If you want your business to show up when prospects search for gyms in their area, you must invest in search engine optimization (SEO).

SEO enhances your website's visibility by optimizing your site's content and structure to rank higher in search results. This makes it more likely that prospects will find your business. Tools like Semrush and Ahrefs can help you identify keywords to include on your site that may help improve your ranking. Given how tricky SEO can be, having a pro in your corner can make things way easier and boost your gym's online game.

Implement Social Media Marketing

With over 302 million social media users in the United States alone, social media marketing helps gyms reach a wider audience. Leveraging platforms like Facebook, Instagram, and TikTok allows fitness establishments to connect with potential clients, share engaging content, and build a community around their brand.

When crafting your social media marketing strategy, include multiple social platforms. Today, the average user engages with up to seven platforms a month . Creating content across different platforms aligns with user behavior and maximizes your gym's visibility.

Utilize Email Marketing

As other digital marketing strategies have arisen, you may wonder if email marketing is still relevant. Let’s set the record straight. With 99% of email users checking their inbox daily , email marketing remains an effective tool for reaching and engaging your target audience.

Gym owners can utilize email marketing to promote special offers, fitness challenges, and exclusive content to their members.

Leveraging Technology to Enhance Your Members’ Experience

When deciding what products and services you want to include in your business plan, consider ways you can integrate technology into the workout experience. Offering fitness tools beyond the standard free weights and cardio machines will help improve your members' health journey and help you stand out from competitors.

Member Apps

If you want to attract tech-savvy members, Randy Hetrick recommends investing in a gym app, saying,"Start with a great member app that engages, challenges, and rewards your members for exhibiting the behaviors that will deliver the results they seek."

Not techy enough to create an app yourself? No worries. Gym management software often includes custom-branded member apps as part of their software solution. These apps allow members to view and reserve classes, track workouts, and access digital exercise programs.

Remote Training

While some people enjoy going to the gym to pump iron, 56.1% of exercisers prefer working out at home . Offering remote training options like digital personal training or online classes can help you tap into this market and add another revenue stream to your business.

Wearable Tech

As fitness technology advances, exercisers have become increasingly interested in tracking their health data. Nearly one-third of Americans use wearable tech like smartwatches to track metrics like steps, heart rate, and burned calories.

Recognizing consumer interest in this trend, successful fitness brands like Orangetheory Fitness utilize smart tech in their workouts. This provides members with helpful information on their health and facilitates friendly competition.

Consider elevating your gym’s membership experience by investing in customized wearable tech for your members. Providing devices like MyZone trackers at the beginning of each training session lets you gamify classes through leaderboards showcasing individual efforts.

Smart Equipment

With 38% of gym goers citing equipment as their primary reason for visiting their gym, investing in quality exercise tools is crucial. Smart equipment like Peloton bikes and Tonal strength machines track users' progress and provide real-time feedback. This data allows individuals to refine their exercise techniques, prevent injuries, and optimize their workout efficiency.

Gym Pricing Strategies and Membership Models

Determining the right pricing strategy for your gym can be tricky. If you charge too much, you'll scare away your target audience. On the flip side, if you charge too little, you'll hurt your bottom line.

To strike the right balance, examine your forecasted expenses and research your competitors' pricing. This will give you a strong idea of how much money you need to bring in each month to stay profitable and how much you can charge to remain competitive in the market. Below are standard pricing model options that may be a good fit for your business.

Monthly Memberships

Monthly memberships are one of the most popular membership models among gyms. These plans have a fixed monthly fee that grants members access to gym facilities and services.

Tiered Memberships

Membership plans structured in tiers offer varying levels of access to amenities and services based on the chosen tier. Higher tiers often come with additional benefits at a higher cost.

Class Packages

If your gym offers a variety of classes, you may want to consider offering class packages. This membership option allows members to purchase packages that include a set number of classes allowing flexibility in attendance.

Measuring Success: Key Metrics to Track in Your Business

After creating a gym business plan, ensure it stays on track by using metrics to monitor its progress. Research shows that companies that track their progress are more likely to achieve their business goals . While the best metrics to track will vary from business to business, keeping tabs on the following metrics will give you valuable insights into the health and growth of your gym.

Net Profit Margin

Net Profit Margin is a profitability ratio that calculates the percentage of net profit relative to total revenue. Your net profit margin is one of your gym's most important financial health indicators. This metric helps determine how much of every dollar your make is kept as profit.

Gross Profit Margin

Gross Profit Margin is the percentage of revenue left after subtracting the cost of products and services sold (like labor, equipment, and other consumables), showing how well a gym manages its core operations.

Revenue Growth

Revenue growth is the percentage increase in total income over a specific period, reflecting the expansion or contraction of the business. It's important for gyms (and all businesses) because steady revenue growth indicates an increasing demand for your services.

Member Retention Rate

Your gym's member retention rate is the percentage of members retained over a set time period. A high retention rate indicates happy clients that contribute to a consistent revenue stream.

Member Growth Rate

Your gym's member growth rate reflects the percentage increase in members over a specific period. A higher growth indicates an increase in popularity and will likely increase revenue.

Bottom Line

Opening a successful gym requires a little planning. But, investing time into crafting a strategic business plan increases your likelihood of success and improves your chances of receiving funding. Check out the U.S. Small Business Administration's resources for more information about creating a business plan.

More Advice for Gym Owners

• Best Gym Management Software
• Ultimate Guide to Opening a Gym
• Grow Your Gym: Capitalize on Fitness Business Trends
• Best Fitness Industry Events for Fitness Professionals
• How to Increase Gym Membership Sales

Intro to Gym Equipment Financing for Gym Owners

• Harvard Business Review. Research: Writing a Business Plan Makes Your Startup More Likely to Suceed
• Bplans. Do You Need a Business Plan? Scientific Research Says Yes
• IHRSA. Media Center
• IHRSA. The 2020 IHRSA Health Club Consumer Report
• IHRSA. How to Build a Successful Health Club Franchise Model
• Power Reviews. Survey: The Ever-Growing Power of Reviews (2023 Edition)
• socPub. 5 Mobile Marketing Mistakes and How to Fix Them
• Statista. Social Media Usage in the United States-Statistics & Facts
• Forbes. Top Social Media Statistics And Trends of 2024
• Optinmonster. Is Email Marketing Dead? Statistics Say: Not a Chance.
• GoodFirms. At-Home Fitness Regime Is the Top Fitness Trend in 2022: GoodFirms' Survey
• National Heart, Lung, and Blood Institute. Study Reveals Wearable Device Trends Among U.S. Adults
• BDC. SMEs and Growth: Challenges and Winning Strategies
• U.S. Small Business Administration. Plan Your Business

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How to Write a Business Plan for a Gym

Welcome to this comprehensive guide on how to write a business plan for a gym. Whether you’re starting a new gym or looking to expand your existing fitness center, a well-crafted gym business plan is essential for success. This article will delve into all the critical aspects that you need to consider when developing a gym business plan specifically tailored to the unique needs of the fitness industry.

Learn how to create a gym business plan with our step-by-step guide. It’s no easy feat to learn how to open a gym or how to start a fitness business , so be sure to manage your gym with the best gym management software and the best personal training software that can help professionalize your gym business and demonstrate to potential investors, bankers, or gym business partners that you have a solid gym business plan.

Get a demo now!

Steps to Create a Gym Business Plan

Follow these steps to create a business plan for a gym, then check out our free gym business plan template examples below.

Step 1: Conduct Preliminary Research

Before you start writing your business plan, conduct preliminary research on the fitness industry, market demand, and competition in your area. This will help you make informed decisions throughout the planning process.

Step 2: Define Your Business Objectives and Mission

Clearly state the mission of your gym business and outline the objectives you aim to achieve. This sets the tone for the rest of your business plan and provides a roadmap for your venture.

Step 3: Executive Summary

Write an executive summary that provides an overview of your business plan. This should include your mission, objectives, and financial projections. It serves as a quick snapshot of your business plan for investors or stakeholders.

Step 4: Business Description

Describe the core concept of your gym, the services you plan to offer, and the business structure. Here, you also introduce your vision for the gym and its role in the community.

Step 5: Market Analysis

Delve into your gym target market , discussing the demographics, psychographics, and lifestyle choices of potential customers. Additionally, consider conducting a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to gauge your position in the market.

Read More: How to Choose a Target Market for Your Gym

Step 6: Marketing and Sales Strategies

Outline how you plan to market your gym and the sales strategies you’ll employ to reach your target audience. This could include social media advertising, local partnerships, and promotions.

• Gym Marketing Ideas
• Gym Social Media Marketing
• Gym Partnership Marketing

Step 7: Service Offering

List out in detail the services you plan to offer such as personal training, group classes, and other amenities. Provide pricing strategies for each service.

Read More: Gym Pricing Strategy

Step 8: Financial Projections

Provide a comprehensive financial outlook for your gym, including startup costs, revenue projections, and a break-even analysis. This is especially crucial for securing funding or loans.

• How to Create a Gym Budget
• Accounting for Gyms
• How to Get a Gym Loan
• Gym Sales Forecasting

Step 9: Legal Structure and Licenses

Explain the legal structure of your business (e.g., sole proprietor, LLC, corporation) and list out all required licenses and permits. Make sure to include any regulations that pertain to the health and fitness industry.

What is the best business structure for a gym?

• Gym Insurance
• Personal Trainer Insurance
• Why is insurance important for a gym?
• How to Negotiate a Gym Lease
• Common Gym Lease Issues to Avoid

Step 10: Appendices and Supporting Documents

Include any additional materials that support your business plan such as resumes of key management, market research data, and any preliminary agreements with partners or suppliers.

Once your business plan is complete, it serves as a strategic guide for you, but also as a presentation for potential investors or lenders. Consider using Exercise.com to manage various aspects of your gym business, such as membership management, payment processing, and scheduling. Book a demo today to see how it can help you implement your business plan successfully.

Read More: Best Gym Management Software

Gym Business Plan Template Example

Table of contents, executive summary, business description, market analysis, marketing plan, sales strategies, financial projections, appendices and supporting documents.

• Mission Statement: Example: “To create a community-focused gym that promotes health and wellness for residents of [City].”
• Objectives: Example: Reach 200 members in the first 6 months.
• Financial Summary: Example: $250,000 initial investment; expecting to break even in 12 months.
• History: Example: Founded in 2023, aiming to fill the gap in affordable fitness facilities in the area.
• Vision: Example: To be the go-to fitness hub in [City] for people of all fitness levels.
• Services Offered: Example: Personal Training, Group Classes, Nutritional Planning, etc.
• Target Audience: Example: Residents aged 20-50 looking for affordable fitness solutions.
• Market Trends: Example: Increased awareness in health and wellness.
• Competitor Analysis: Example: Three other gyms in the vicinity, but none focus on [your unique selling proposition].
• Advertising Channels: Example: Social Media, Local Newspapers, Flyers.
• Promotions: Example: Opening month 50% off on all membership plans.
• Pricing: Example: Multiple membership tiers – Monthly, Quarterly, Annually.
• Upselling: Example: Personal Training sessions, Dietary Plans, Merchandise.
• Startup Costs: Example: $100,000 for equipment, $50,000 for lease.
• Revenue Forecasts: Example: Expecting to generate $300,000 in the first year.
• Break-even Analysis: Example: Expecting to break even within 12 months.
• Resumes of Key Management
• Market Research Data
• Financial Models
• Licenses and Permits

To streamline all the various aspects of your gym business, consider leveraging the capabilities of Exercise.com’s custom-branded fitness app . It’s an all-in-one software solution designed for fitness professionals, offering features like online booking, payment management, online fitness coaching, and much more. To see it in action, book a demo today .

Gym Business Plan Sections Explained

Writing a business plan for your gym is an essential step in the formation and development of your fitness-related business. A well-crafted business plan can serve as a roadmap, guiding you through each phase of starting and managing your business. It also helps you identify potential challenges and plan appropriate ways to mitigate them. Here’s a step-by-step walkthrough of each of the sections needed to help you craft a compelling business plan for your gym.

Start with an executive summary that gives a high-level overview of your gym. This should include the gym’s mission statement, the market need you’re addressing, and the key features that set your gym apart from the competition. Aim for brevity but ensure it captures the essence of your business.

Example Text

“Our mission is to create a community of fitness enthusiasts who feel at home while achieving their wellness goals. Located in the heart of the city, our gym offers state-of-the-art equipment, personalized training, and a welcoming atmosphere.”

This section should offer a more detailed description of your gym, including its history, vision, and objectives. Explain the type of gym you’re planning to open and the services you’ll offer.

“Our gym will focus on strength training and offer services such as personal training, group classes, and nutritional guidance.”

Conduct an analysis of your market. Identify your target audience, assess the competition, and analyze market trends that could impact your business. This will help you understand where your gym fits in the current market.

“The fitness market in our location has grown by 20% in the last two years, with a noticeable gap in specialized strength training gyms.”

Lay out your marketing strategies. How will you attract customers to your gym? What channels will you use for marketing? Include both digital and traditional marketing methods.

“Our marketing plan includes social media advertising, local partnerships, and an opening day promotion.”

Describe the sales process, including pricing and payment methods. Indicate any plans for upselling services like personal training, nutrition plans, or merchandise.

“Memberships will be sold both online and in-person, with various pricing tiers to meet different customer needs.”

This section should contain detailed financial projections for your gym. Include startup costs, operating costs, and revenue forecasts. If possible, provide scenarios for best-case, moderate-case, and worst-case scenarios.

“We expect to break even by the end of the first year with a moderate-case scenario projecting a 20% profit by the end of year two.”

Lastly, include any supporting documents like market research, resumes of the management team, or any other information that supports your business plan.

“Attached are the resumes of our management team and market research findings.”

To run your gym efficiently, consider leveraging Exercise.com’s custom-branded fitness app, which provides all-in-one software solutions for managing your business, from booking and payments to hosting exercise videos and online fitness coaching. Book a demo today to find out more .

Example Gym Business Plan Financials (Small Gym)

Creating a robust gym financial plan is crucial for any gym business, especially when it comes to securing loans or attracting investors. The financial section typically includes projections for startup costs, revenue, expenses, and profitability. Below are example financials that could be part of a small gym business plan.

Gym Startup Costs

Equipment costs.

• Treadmills: $15,000
• Weight machines: $10,000
• Free weights: $5,000

Facility Costs

• Lease: $8,000 (initial deposit)
• Renovations: $12,000

Initial Marketing Costs

• Advertising and Promotion: $3,000

Miscellaneous

• Legal and Licensing: $2,000
• Insurance: $1,000

Total Startup Costs: $56,000

Gym Revenue Projections (First Year)

Monthly membership fees.

• 150 members at $50/month: $7,500

Personal Training Fees

• 30 sessions at $40/session: $1,200

Additional Revenue Streams

• Merchandise sales: $300

Monthly Revenue: $9,000

Annual Revenue: $108,000

Gym Operating Expenses (First Year)

Monthly rent, staff salaries, maintenance.

Monthly Expenses: $8,500

Annual Expenses: $102,000

Gym Profitability Projections

Monthly Profit: $500

Annual Profit: $6,000

Gym Break-even Point: Approximately 7 months

Note: These figures are hypothetical and should be tailored to fit the specifics of your own gym business model . Exercise.com can help you manage various aspects of your gym business, including tracking financials. Book a demo today to find out more.

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Example Gym Business Plan Financials (Large Gym)

For gym owners looking to operate on a larger scale, the financial dynamics will differ significantly. A larger operation means higher revenue potential but also increased costs. Below are example financials tailored to a larger-scale gym business.

• Treadmills: $50,000
• Weight machines: $35,000
• Free weights: $15,000
• Lease: $30,000 (initial deposit)
• Renovations: $50,000
• Advertising and Promotion: $10,000
• Legal and Licensing: $8,000
• Insurance: $5,000

Total Startup Costs: $203,000

• 800 members at $80/month: $64,000
• 200 sessions at $60/session: $12,000
• Merchandise sales: $2,000
• Premium services (spa, massage, etc.): $5,000

Monthly Revenue: $83,000

Annual Revenue: $996,000

Monthly Expenses: $41,500

Annual Expenses: $498,000

Monthly Profit: $41,500

Annual Profit: $498,000

Break-even Point: Approximately 5 months

These are hypothetical numbers tailored for a larger-scale gym business. Exercise.com offers solutions to help you manage your gym’s financials, member management, and more. To understand how it can cater to a larger scale operation, booking a demo is highly recommended.

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Why a Solid Business Plan is Essential for Gym Owners

A solid fitness center business plan serves as a roadmap for your gym’s success. It not only helps you define your goals and objectives but also provides a detailed framework for achieving them. With a well-designed plan in place, you can effectively navigate potential challenges, make informed decisions, secure funding, and attract potential investors. Ultimately, a business plan acts as a tool to guide your gym’s growth and ensure its long-term viability.

In addition, a comprehensive business plan allows gym owners to analyze the market and competition, identify their target audience, and develop effective marketing strategies. By conducting market research and understanding the needs and preferences of potential customers, gym owners can tailor their services and offerings to meet the demands of their target market. This not only helps attract and retain customers but also positions the gym as a competitive player in the industry.

Read More: How to Start a Fitness Business

Understanding the Purpose and Benefits of a Gym Business Plan

A gym business plan serves several purposes. First and foremost, it outlines your vision, mission, and core values. By clearly defining these elements, you can align your gym’s operations and activities with your overarching goals. Additionally, a well-developed business plan encompasses market research, competitor analysis, marketing strategies, financial projections, and risk management considerations. It also helps you identify and capitalize on growth opportunities within the fitness industry.

One of the key benefits of having a gym business plan is that it provides a roadmap for success. By setting clear objectives and outlining the steps needed to achieve them, you can stay focused and track your progress. This not only helps you stay on track but also allows you to make adjustments and improvements along the way.

Another important aspect of a gym business plan is that it can help attract investors or secure financing. When seeking funding for your gym, having a well-developed business plan demonstrates your professionalism and commitment to success. It provides potential investors or lenders with a comprehensive overview of your gym’s potential profitability and growth prospects, increasing your chances of securing the necessary funds.

Researching and Analyzing the Fitness Industry for Your Business Plan

Conducting comprehensive research on the fitness industry is crucial to gaining a solid understanding of current trends, consumer preferences, and market demand. Start by examining industry reports, market studies, and demographic data. Analyze factors such as population density, income levels, and competition in your target location. Additionally, researching consumer behavior and emerging fitness trends will allow you to tailor your gym’s offerings to meet customer needs and stay ahead of the competition.

Another important aspect of researching the fitness industry is understanding the competitive landscape. Identify and analyze your direct competitors, including their pricing strategies, target market, and unique selling points. This information will help you differentiate your gym and develop a competitive advantage.

Furthermore, it is essential to consider the technological advancements and digital trends impacting the fitness industry. With the rise of wearable fitness devices, mobile apps, and online fitness platforms, understanding how technology is changing the way people engage with fitness can provide valuable insights for your business plan. Explore opportunities to incorporate technology into your gym’s operations, such as offering virtual classes or implementing a mobile app for member engagement.

Defining Your Gym’s Vision, Mission, and Values in the Business Plan

Your gym’s vision, mission, and values are the guiding principles that shape your business’s identity and culture. Clearly define your gym’s vision statement, describing the ultimate goal you want to achieve. Your mission statement should outline the purpose of your gym and the value it offers to customers. Additionally, identify and establish core values that reflect your gym’s commitment to excellence, customer satisfaction, and overall well-being.

When defining your gym’s vision, mission, and values in the business plan, it is important to consider the unique selling points of your gym. These could include specialized training programs, state-of-the-art equipment, or a focus on community engagement. By highlighting these aspects in your vision, mission, and values, you can differentiate your gym from competitors and attract a target audience that aligns with your offerings. Furthermore, regularly reviewing and revisiting your gym’s vision, mission, and values can help ensure that they remain relevant and aligned with the evolving needs and preferences of your customers.

Identifying Your Target Market and Demographics

Identifying your gym target market is a critical step in developing a successful gym business plan. Determine the demographics, psychographics, and specific needs of your ideal customers. Consider factors such as age, gender, income level, lifestyle preferences, and fitness goals. This information will help you tailor your marketing efforts, facility design, and service offerings to effectively attract and retain your target audience.

One important aspect to consider when identifying your target market is their geographic location. Understanding where your ideal customers are located can help you determine the best location for your gym. For example, if your target market consists of young professionals who work in the downtown area, it would be beneficial to open your gym in a central location that is easily accessible to them.

Another factor to consider is the competition in your target market. Researching and analyzing the existing gyms and fitness centers in your area can give you insights into the demand for fitness services and the potential saturation of the market. This information can help you differentiate your gym by offering unique services or targeting a niche market that is currently underserved.

Conducting a Competitive Analysis for Your Gym Business Plan

Conducting a competitive analysis allows you to understand your direct and indirect competitors, their strengths, weaknesses, and market positioning. Evaluate their pricing strategies, service offerings, marketing tactics, and customer reviews. By identifying gaps in the market and differentiating yourself from competitors, you can position your gym as a unique and appealing option for potential customers.

Developing a Unique Selling Proposition (USP) for Your Gym

Your gym’s unique selling proposition (USP) is what sets you apart from the competition. It represents the distinctive factors that make your gym attractive to your target market. It could be specialized classes, personalized training programs, state-of-the-art equipment, or exceptional customer service. Developing a strong USP and effectively communicating it in your business plan and marketing materials will help your gym stand out and attract loyal customers.

Creating a Strategic Marketing Plan to Attract and Retain Members

A strategic marketing plan is essential for promoting your gym and attracting potential members. Your plan should include a mix of online and offline marketing strategies, such as social media marketing, search engine optimization (SEO), email marketing, and local advertising. Clearly outline your target audience, marketing channels, messaging, and gym business budget allocation. Additionally, consider creating gym referral programs , loyalty rewards, and other retention strategies to ensure a steady stream of members.

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Designing an Effective Pricing Structure for Different Membership Options

Designing an effective pricing structure is crucial to ensuring the financial success of your gym. Consider factors such as your target market, competitors’ pricing, facility overhead costs, and desired profit margins. Offer different membership options and pricing tiers to cater to various customer needs and budgets. Consider offering special promotions, discounts, and trial periods to attract new members and encourage long-term commitment.

Outlining the Organizational Structure and Staffing Requirements in Your Gym Business Plan

Outlining the organizational structure and staffing requirements in your business plan helps you determine the roles and responsibilities necessary to operate your gym successfully. Clearly define the management hierarchy, operational departments, and staffing needs. Outline key positions, their qualifications, and responsibilities. Additionally, consider employee training and development programs to ensure the delivery of exceptional customer service and consistent quality throughout your gym.

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Detailing Equipment, Facilities, and Amenities in Your Gym Business Plan

Detailing the equipment, facilities, and amenities available in your gym is essential for attracting and retaining members. Describe the types of equipment you offer, such as cardio machines, strength training equipment, and specialized fitness tools. Additionally, highlight any special facilities or amenities, such as swimming pools, group exercise studios, locker rooms, saunas, or a juice bar. Ensure that your gym’s offerings align with the preferences and expectations of your target market.

Addressing Legal and Regulatory Considerations in the Business Plan for a Gym

Addressing legal and regulatory considerations is crucial for ensuring your gym operates within the boundaries of the law. Research and comply with local, state, and federal regulations related to zoning, permits, licenses, health and safety standards, and employment law. Consider consulting with an attorney experienced in the fitness industry to ensure your gym’s compliance and minimize potential risks.

Crafting Financial Projections and Budgets for Your Gym Business Plan

Crafting financial projections and budgets is a vital component of your gym business plan. Project your revenue streams, including membership fees, personal training services, and retail sales. Consider factors such as monthly expenses, payroll, equipment maintenance, marketing costs, and facility rent. Create realistic gym financial forecasts , including income statements, cash flow statements, and balance sheets, to demonstrate the viability and profitability of your gym.

Securing Funding Options for Starting or Expanding Your Gym Operations

Funding is often necessary when starting or expanding a gym. Explore various funding options, such as traditional bank loans, Small Business Administration (SBA) loans, angel investors, venture capitalists, crowdfunding, or personal savings. Prepare a compelling business plan highlighting your gym’s potential return on investment to attract potential funders. Additionally, be prepared to present financial projections, market research, and a detailed breakdown of how the funding will be used to grow your gym’s operations.

Read More: How to Get a Loan for a Gym

Implementing Key Performance Indicators (KPIs) to Track Success in Your Gym Business Plan

Implementing key performance indicators (KPIs) allows you to monitor and measure the success of your gym’s operations. Identify KPIs related to membership growth, member retention rates, revenue per member, average visit frequency, customer satisfaction, and employee productivity. Continuously track and analyze these metrics to make informed decisions, identify areas for improvement, and ensure your gym’s ongoing success.

Creating Contingency Plans and Risk Management Strategies for your gym business plan.

Creating contingency plans and risk management strategies is essential for mitigating the potential risks and uncertainties that may arise in the operation of your gym. Identify potential risks, such as economic downturns, equipment breakdowns, and legal disputes. Develop contingency plans and procedures to address these risks effectively. Additionally, consider gym business insurance policies to protect your gym and its assets.

Incorporating Sustainability Practices into Your Gym’s Business Model.

Incorporating sustainability practices in your gym demonstrates your commitment to environmental responsibility and attracts eco-conscious customers. Consider energy-efficient equipment, recycling programs, paperless operations, and environmentally friendly cleaning products. Additionally, educate your staff and members about the importance of sustainable practices and provide resources to encourage their participation.

Leveraging Technology and Digital Tools to Enhance Operations in Your Gym.

Technology plays a crucial role in enhancing efficiency and customer experience in the modern gym industry. Consider implementing the best gym member management software , online booking systems, mobile apps, and wearable fitness trackers. Leverage digital marketing strategies, such as social media advertising and email campaigns, to reach a wider audience. Utilize data analytics to gain insights into member behavior, preferences, and trends, enabling you to make data-driven decisions.

Evaluating Growth Opportunities and Expansion Plans within the Fitness Industry.

Finally, continuously evaluate growth opportunities and expansion plans within the fitness industry. Monitor emerging trends, new fitness concepts, and changes in consumer preferences. Assess the feasibility of opening additional locations, introducing new services, or targeting new market segments. Review and update your business plan regularly to adapt to changing dynamics and maximize your gym’s growth potential.

By following these guidelines and incorporating all the essential elements discussed, you’ll be well equipped to write a comprehensive business plan that sets your gym up for success in the competitive fitness industry. Remember, a thoughtful and well-thought-out plan is not only a roadmap but a crucial tool for attracting investors, securing funding, and ultimately, achieving your gym’s goals and objectives. Good luck on your journey to building a successful gym!

Read More: How do I write a proposal for a gym?

How do I create a business plan for a gym?

Creating a business plan for a gym involves several key components: an executive summary, market analysis, business structure, services offered, marketing strategy, financial projections, and operational plan. Each section should be detailed, backed by research, and tailored to your specific gym concept.

Do I need a business plan for a gym?

Yes, a business plan is essential for a gym as it provides a roadmap for your business, helps in securing funding, and serves as a guide for operational decisions.

When and how will I use a gym business plan?

A gym business plan is used primarily at the startup phase for securing loans or investments. However, it is also a living document that should be revisited and updated periodically to guide your business decisions.

How will a gym business plan help me?

A gym business plan will provide a clear strategy and timeline for your business, help you understand your market and competition, and make it easier to secure funding.

Should I pay for a gym business plan or create one myself?

This depends on your expertise and available resources. If you have a good understanding of business planning, you can create one yourself. Otherwise, hiring a professional may be beneficial.

Do I need a gym business plan to get a gym loan?

Yes, most financial institutions will require a detailed business plan before approving a loan for your gym.

Read More: How to Get a Gym Loan

The best business structure for a gym could be a Sole Proprietorship, Partnership, LLC, or Corporation, depending on factors like liability, taxation, and investment needs.

Read More: What is the best business structure for a gym?

How do I start a gym project?

Starting a gym project involves market research, business planning, securing funding, finding a location, purchasing equipment, hiring staff, and launching marketing campaigns.

Read More: How to Start a Gym

How profitable is owning a gym?

Owning a gym can be profitable, with annual earnings varying greatly depending on location, size, and services offered. Utilizing management software like Exercise.com can help maximize profitability.

Is owning a gym a good business idea?

Yes, with the rising focus on health and wellness, owning a gym can be a profitable venture if well-managed and strategically located.

What is the hardest part of owning a gym?

The hardest part is often balancing high operating costs with the need for continuous marketing and customer retention.

Where do gyms make the most money?

Gyms often make the most money from membership fees, but additional revenue can come from personal training, group classes, and merchandise.

What is the toughest thing about being in a gym business?

The toughest part is likely customer retention, as the industry often sees seasonal fluctuations and competition can be stiff.

How much do gym owners make?

As previously discussed, earnings can vary widely but can range from around $49,000 to over $82,000 annually based on location.

Read More: Gym Owner Average Income

What is the budget of a gym business plan?

The budget should outline initial setup costs, ongoing operational expenses, expected revenue, and financial projections for at least the first three years.

How do gym owners make money?

Gym owners make money primarily through memberships, but also through services like personal training, group classes, and sometimes merchandise and food sales.

Is it hard to start a gym business?

Starting a gym business can be challenging due to high startup costs, competition, and the need for skilled staff and effective marketing.

What is required for starting a gym?

Requirements include a solid business plan, funding, a suitable location, licenses and permits, quality gym equipment, and a marketing strategy.

What would you need to open a small gym business?

For a small gym, you would need a more modest amount of funding, fewer staff, and potentially less space and equipment, but the foundational requirements remain the same.

• What makes a gym successful?

A successful gym offers quality service, maintains a loyal customer base, keeps up with industry trends, and manages its finances well.

• Most Successful Gyms

How many members does a gym need to be successful?

While the number can vary, a commonly cited range is at least 300 to 500 members to break even and become profitable.

What are the disadvantages of a gym business?

Disadvantages include high startup and operational costs, difficulty in retaining customers, and vulnerability to economic downturns.

Is it better to own a gym or franchise a gym?

Both have pros and cons. Owning gives more control but comes with more risk, while franchising offers brand recognition but less operational freedom.

What scares gym owners the most?

Common fears include failing to retain customers, facing stiff competition, and not being able to cover operational costs.

How can I open a gym with no money?

This is challenging but not impossible. Options include taking out a loan, finding investors, or starting small, such as offering outdoor classes before moving to a physical location.

What causes gyms to fail?

Common reasons include poor location, lack of effective marketing, subpar service, and high operational costs.

Read More: Why do gyms fail?

What expenses do gym owners have?

Expenses include rent, utilities, staff salaries, equipment purchase and maintenance, marketing, and insurance.

What is the monthly revenue of a gym?

This varies widely depending on size, location, and services offered, but monthly revenue can range from a few thousand dollars to several tens of thousands.

How much does it cost to maintain a gym?

Maintenance costs can include equipment repair, utility bills, staff wages, and cleaning services, and can range from hundreds to thousands of dollars per month.

Read More: Gym Costs

How much equipment do I need for a gym?

This depends on the type and size of the gym, but a general gym will require cardio machines, strength training equipment, free weights, and potentially specialized equipment for classes.

Read More: What equipment do you need to open a gym?

How much space do you need for a gym?

The space needed can range from as little as 500 square feet for a small specialized gym to 10,000 square feet or more for a large commercial gym.

Read More: How much space do you need for a commercial gym?

How much investment do I need to open a gym?

Initial investment can range from a few thousand dollars for a small, budget-friendly gym to several hundred thousand for a large, high-end facility.

What sort of expenses does a gym have?

Expenses typically include rent, utilities, equipment, staffing, marketing, and administrative costs.

How can Exercise.com help me manage and grow my gym?

Exercise.com offers comprehensive gym management software that streamlines tasks like membership management, scheduling, and payment processing. It also offers marketing tools to help you attract and retain members, making it easier to grow your gym. For a detailed look at how Exercise.com can assist you, consider booking a demo .

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Business Plan Template for Gym Business

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Thinking about starting your own gym business? Don't sweat it, we've got you covered! With ClickUp's Business Plan Template for Gym Business, you can turn your fitness dreams into a reality.

Our template is the ultimate blueprint for success, helping you:

• Outline your goals, strategies, and marketing plans to attract and retain clients
• Project profitability and secure funding with a comprehensive financial plan
• Stay organized throughout the development and operation of your gym

Whether you're a fitness enthusiast turned entrepreneur or a seasoned gym owner looking to level up, our template will guide you every step of the way. Get started today and build the gym empire you've always dreamed of!

Business Plan Template for Gym Business Benefits

When starting a gym business, having a solid business plan is crucial for success. With ClickUp's Business Plan Template for Gym Business, you can:

• Clearly define your gym's mission, vision, and unique selling proposition
• Create a comprehensive marketing plan to attract and retain customers
• Outline your financial projections and budget to secure funding and investors
• Set achievable goals and strategies for growth and expansion
• Stay organized and track progress with task management and deadlines
• Easily collaborate with partners and team members to ensure everyone is on the same page.

Main Elements of Gym Business Business Plan Template

When starting your gym business, it's crucial to have a well-structured business plan to guide your strategies and ensure success. ClickUp's Business Plan Template for Gym Business provides the following key elements:

• Custom Statuses: Stay on top of your business plan progress with statuses like Complete, In Progress, Needs Revision, and To Do.
• Custom Fields: Utilize custom fields such as Reference, Approved, and Section to add specific details and track important information within your business plan.
• Custom Views: Access different views like Topics, Status, Timeline, Business Plan, and Getting Started Guide to organize and visualize your gym business plan effectively.

With this template, you'll have the perfect foundation to outline your gym's goals, financial projections, marketing strategies, and more, ensuring a successful launch and operation.

How To Use Business Plan Template for Gym Business

If you're starting a gym business, creating a comprehensive business plan is crucial for success. With ClickUp's Business Plan Template, you can easily outline your goals and strategies. Follow these steps to effectively use the template:

1. Define your gym's mission and vision

Start by clearly defining your gym's mission statement and vision. What is the purpose of your gym? What do you hope to achieve? This will serve as the foundation for your business plan and guide all future decisions.

Use the Docs feature in ClickUp to write a compelling mission and vision statement for your gym.

2. Identify your target market

Next, identify your target market. Who are your ideal customers? Consider demographics such as age, gender, fitness goals, and location. Understanding your target market will help you tailor your marketing efforts and services to attract and retain customers.

Create custom fields in ClickUp to track key information about your target market, such as age range, fitness goals, and preferred workout styles.

3. Outline your services and pricing

Outline the services your gym will offer, such as personal training, group classes, or specialized programs. Determine the pricing structure for each service, taking into account your target market's budget and competitors' pricing.

Use the Table view in ClickUp to create a structured breakdown of your services and pricing options.

4. Develop a marketing strategy

A strong marketing strategy is essential for attracting new members to your gym. Determine the channels you will use to reach your target market, such as social media, local advertising, or partnerships with other businesses. Also, define your unique selling points and how you will differentiate your gym from competitors.

Utilize the Calendar view in ClickUp to plan and schedule your marketing activities, ensuring a consistent and effective approach.

5. Plan your financials and projections

Finally, outline your gym's financials and projections. Create a budget that includes startup costs, monthly expenses, revenue projections, and profit targets. Consider factors such as equipment purchases, rent, staff salaries, and marketing expenses.

Use the Dashboards feature in ClickUp to track and monitor your financials, allowing you to make informed decisions and adjust your plan as needed.

By following these steps and utilizing ClickUp's Business Plan Template, you can create a comprehensive and effective plan for your gym business. Good luck!

Get Started with ClickUp’s Business Plan Template for Gym Business

Entrepreneurs planning to start a gym business can use the Business Plan Template to outline their goals, strategies, finances, and marketing plans, helping them project profitability, secure funding, and stay organized throughout the development and operation of their gym.

To get started with the Business Plan Template for Gym Business:

Hit "Add Template" to sign up for ClickUp and add the template to your Workspace. Designate the Space or location in your Workspace where you want this template applied.

Invite relevant members or guests to your Workspace to collaborate on the business plan.

Take advantage of the full potential of this template to create a comprehensive gym business plan:

• Use the Topics View to organize different sections of your business plan, such as Executive Summary, Market Analysis, Financial Projections, and Marketing Strategy.
• The Status View will help you track the progress of each section, whether it's complete, in progress, needs revision, or to do.
• The Timeline View allows you to set deadlines and milestones for each section, ensuring you stay on track.
• Utilize the Business Plan View to get an overview of the entire plan and easily navigate between sections.
• The Getting Started Guide View provides a step-by-step guide to help you complete each section of the business plan.

Customize the template by adding the custom fields: Reference, Approved, and Section. Use the Reference field to link supporting documents or resources, mark sections as Approved when finalized, and categorize sections using the Section field.

Update statuses, custom fields, and progress as you work on the business plan to keep everyone informed and ensure maximum productivity.

Monitor and analyze the business plan to make informed decisions, refine strategies, and secure funding for your gym business.

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How to Write a Great Gym Business Plan

It’s an exciting prospect to  open your very own gym . However, it’s important to remember that you’re also starting a business. That requires a certain type of preparation and diligence because you’re competing with  31,000 other gyms in America.

To set up your operations, it’s important to start strong with a business plan. Most startups craft one to attract investors and stakeholders, and you can too. Ready to learn how to make your own? Discover why this document matters and specific steps to create a gym business plan.

What Is a Gym Business Plan? 

A business plan is your roadmap for how your company plans to succeed. This comprehensive document outlines the strategic and operational framework for establishing and running a fitness center. It serves as a roadmap for a fitness entrepreneur, detailing every aspect of the venture, from market analysis and marketing strategies to financial planning and management structures. 

This plan should answer three key questions for yourself and potential stakeholders: 

• How does your gym work?
• What does success look like?
• What steps are you going to take to succeed?

Answering these can help an investor see what makes your company unique — and worth funding. 

Why Create a Business Plan? 

Writing a plan makes your business  more likely to succeed . It helps you clarify your goals and identify weaknesses in your plans ahead so you can correct them ahead of time so you  hit the ground running.

A solid business plan can also help you attract investors. This can be a major help, considering the cost to start a fitness company can range between  $10,000 to 50,000 . A clear business plan is a useful document as it fully explains where money will go and how it will be generated in the future. 

Additional benefits from a formal business plan include: 

Create a  mission statement and vision

This document has you craft your purpose in advance and the impact you hope to have. There’s a reason the  most successful and long-standing businesses always have one — it keeps you focused and purpose-driven. This helps increase your member loyalty and growth . 

Build out goals

This plan requires you to set goals, both short-term and long-term. The biggest goal you’ll have is your mission. Your smaller goals help you map out how you will achieve that overall purpose — and are a great way to  motivate your  future team members. These goals might involve your business model or hiring strategies. 

You may also want to consider how your goals will shift and evolve as your company grows. For example, once you build your website, you might change your goals to attracting clients on social media. Consider updating your business plan with your new goals as you go to keep yourself on track as your business evolves. 

Stay competitive in the industry

Today, more people than ever are exercising at home. That creates a challenge to stay relevant in the fitness industry. However, a business plan can help combat that. It gives you a deep understanding of your competitors and what’s needed in this environment, like pricing plans and marketing strategies. These plans can serve as a reference point for evaluating options and making choices that align with your overall business strategy. 

Find funding

You can start a new business with a variety of different funding sources: bank loans, active investors, or even crowdfunding. One way to help any kind of financial backers to envision your company’s success is with a business plan. The plan demonstrates your deep understanding of the marketing and shows how you plan to be profitable. 

Overall, this plan gets your team focused on the goal and ready to take on challenges. 

Components of a Gym Business Plan 

Because business plans are so powerful, it’s important to know how to create one. These are the general pieces you’ll need to include in your plan: 

Executive Summary 

The first section of your plan should include answers to four key questions: 

• Who? Who are you, and what do you offer? 
• Why? Why are you starting this business? 
• What? What do you hope to achieve? 
• How? How are you going to achieve that? 

Try to keep this summary brief since you’ll go into more depth later. The goal here is to provide a concise overview of everything included in your plan. Sometimes it’s  easier to write your executive summary once you have slated out the rest of your plan. That’s because you’ll have a full understanding of everything the document will explore. 

Overview of the Company

This segment is where you delve into the details of your organization. You introduced yourself earlier, but this is where you go deeper. One purpose of this portion is to explain your business model. Additionally, your overview should answer these questions: 

• What’s the purpose of your business? 
• What services will you offer? 
• Who is your target market? 
• What is your founding story? 
• What is your legal structure?  

Competitor Analysis

With a lot of rival gyms out there, taking time to understand your competition can help you position yourself in the marketplace. You might start by examining where your target clients work out right now. That might be big chain gyms, virtual options, and even YouTube videos. Showcasing your knowledge of this information can help potential investors see how you differentiate from the marketplace..

In this section, consider these questions: 

• Who are your competitors? 
• What services do they offer? 
• How do you stand out from your competition? 
• What will draw your clients to your facility? 
• What are your strengths and weaknesses? 
• What pricing do competitors charge? 
• What pricing will you offer? 

Industry Analysis 

Earlier you outlined your direct competitors. Here you dive into environmental conditions. For example,  virtual fitness is expected to grow to  $79.87 billion by 2026 . You could explain how you plan to be a part of that.

Something that can amplify this portion is specifics. For example, you may want to add stats and numbers to it to show that you’ve done your research and to show exactly what stakeholders stand to gain. This section might address:  

• What is the industry like right now? 
• Where is the industry heading in the next five years? 
• How does your business fit into future industry demands? 

Customer Analysis

Your document will often also include a segment on who will come to your gym. Your audience should ideally be hyper-specific. That shows you have a specific client in mind, and you know them well. To illustrate who these people are, consider addressing::  

• Demographics . That includes anything like age, gender, income, occupation, education, and location. 
• Psychographics . This is where you dive into interests, opinions, beliefs, values, and needs. 

Financial Plan

About  82% of small businesses fail because of cash flow problems. Explaining how you plan to fund your company is a vital portion of this plan. Depending on the stage of your startup, you may or may not have hard numbers. If you don’t have those, try to create accurate estimates. That can be done with industry research. Essentially, you will want to answer these questions: 

• How much will your gym make? 
• How does your financial future look? 
• How will you continue to keep revenue coming in? 
• What is your cash flow plan? 

Management Staff 

After explaining the most important parts of your operations, you can introduce yourself and your team. This can be a good time to explain everyone’s qualifications. An ideal team would include experts in everything from fitness to finance. These are the concepts you’ll want to explain:

• How do the specific team members help you achieve success? 
• How will you structure your business to attract and retain  talent ? 
• What benefits and compensation will you offer? 

Marketing Plan

The final piece of the puzzle is creating your advertising strategy. This can help you  find and retain customers . You might detail everything from your email marketing plans  to your  social media strategy The goal is to show that your  marketing approach will  improve sales strategies and engage with your community.  

Some important aspects of this plan include: 

• How are you going to find new clients? 
• How are you going to engage with current clients to help  retention ? 
• How will you get the fund to kickstart your marketing strategy? 
• Who will be handling these efforts? 

Kickstarting Your Business with Gympass

Overall, a business plan is your map to success — how to turn your dreams into a reality. 

A critical part of building a thriving company is regular clients. One way to help build your customer base is to partner with Gympass. Doing so can help boost the number of new patrons coming through your doors. In fact, 75% of first-time visitors with Gympass become repeat customers. 

Learn more about how to get started with  Gympass today! 

• Craig, W. (2018, May 15). The Importance Of Having A Mission-Driven Company. Forbes. Retrieved April 5, 2024, from  https://www.forbes.com/sites/williamcraig/2018/05/15/the-importance-of-having-a-mission-driven-company/?sh=33d59ca83a9c  
• Curley, E. (2021, March 25). 8 Hard Truths to Face Before Starting a Fitness Business. Glofox. Retrieved April 5, 2024, from  https://www.glofox.com/blog/5-hard-truths-to-face-before-starting-a-fitness-business/  
• Develop your marketing plan | business.gov.au. (2023, March 7). Business.gov.au. Retrieved April 5, 2024, from  https://business.gov.au/planning/business-plans/develop-your-marketing-plan  
• Gough, C. (2022, October 27). Number of health clubs in the United States from 2008 to 2022. Statista. Retrieved April 5, 2024, 2023, from  https://www.statista.com/statistics/244922/us-fitness-centers-und-health-clubs/  
• Greene, F. J., & Hopp, C. (2017, July 14). Research: Writing a Business Plan Makes Your Startup More Likely to Succeed. Harvard Business Review. Retrieved April 5, 2024, from  https://hbr.org/2017/07/research-writing-a-business-plan-makes-your-startup-more-likely-to-succeed  
• Hogarty, S. (2022, June 23). What is a vision statement and why is it important? WeWork. Retrieved April 5, 2024, from  https://www.wework.com/ideas/professional-development/management-leadership/what-is-a-vision-statement-and-why-is-it-important  
• Ross, M.-C. (2015, December 14). 5 Reasons Why Mission-Driven Leaders are the Most Successful. LinkedIn. Retrieved April 5, 2024, from  https://www.linkedin.com/pulse/5-reasons-why-mission-driven-leaders-most-successful-ross-gaicd/  
• Steinbach, P. (2022, April 1). Report: Explosive Online Fitness Growth Projected. Athletic Business. Retrieved April 5, 2024, from  https://www.athleticbusiness.com/operations/programming/article/15290412/report-explosive-online-fitness-growth-projected  
• Sutter, B. (2023, May 6). The #1 Reason Small Businesses Fail - And How to Avoid It. Score. Retrieved April 5, 2024, from  https://www.score.org/resource/blog-post/1-reason-small-businesses-fail-and-how-avoid-it  
• Weller, J. (2021, October 3). 8 steps to create a great gym business plan. Glofox. Retrieved April 5, 2024, from  https://www.glofox.com/blog/the-9-key-elements-you-need-to-create-a-great-gym-business-plan/  

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Creating a Gym Business Plan - A Complete Guide

If you’ve found your way here, there’s a good chance you’re either looking to open a gym or revamp your current business plan - Congratulations!

Any business can benefit by starting with a solid business plan. Even if you’ve already hit the ground running, it’s never too late to put one together. In fact, most people are pleasantly surprised that business plans are not all that time consuming to create and that creating a gym business plan can significantly improve your already established business.

A business plan reveals who you are as a business and gives a logical preview of where you’re heading. It is a roadmap that lays out how your business is structured, how you plan to make it succeed, and the exact steps you need to take to get there.

A gym business plan will clearly define the structure of your business , give you a comprehensive insight into your target market and help you lay out your management structure, marketing strategy and financial strategy.

Though we might think of a gym business plan as a one and done type of document, it is actually an ever-evolving plan that grows and changes with you and your business. Ready to carve out a space for yourself in a multi-billion dollar (and climbing!) industry?

First off ask yourself a couple of tough questions:

• Can I afford to run a gym?
• How much time can I invest in this?
• Do I feel comfortable working with people face to face on a daily basis?

Here’s the thing: starting a gym from the ground up is not an inexpensive venture. Between equipment costs, hiring PTs and group class instructors, insurance, rent, etc. you will need to be honest with yourself if this is a business you can afford to get involved with.

If finances are not an issue, it’s time to reflect on how much time you have /are willing to put into this new venture- especially at the onset. Owning and operating a gym or boutique studio is not a 9-5 job and working for yourself can make it extremely difficult to carve out a work/life balance.

Finally, getting started in a fitness business means you need to prepare yourself for an onslaught of face-to-face interaction with members, staff, investors, etc. If that much one-on-one interaction is not something you had prepared yourself for, you might want to re-think this venture.

The good news is that if owning and operating a gym is your dream - the money and hard work that you need to invest in making it a successful venture will be truly worth it.

Your Gym Business Plan Template at a Glance:

Step 1: Executive Summary

The first part of your gym business plan template is your executive summary. This is a quick, to-the-point statement that delineates the what, why and how of your business. It needs to be impactful and concise in framing your goals, your mission and your vision. Don’t worry if you feel like you have more to say - you can add more details in your company overview.

Step 2: Company Overview

If the executive summary was an outline of your gym business, the company overview is where you have the opportunity to go more into depth with your overall vision. Here you will go over the purpose and plans for your gym, your business model and the strategies you will employ to accomplish these objectives. A general overview of your target clients and what products/services you will provide for them can be included as well, but you will get more into detail regarding your target audience and services below. Don’t be afraid to get personal here! Include your own history in the world of health and fitness and/or business. Clearly communicate your vision for this gym. These are all relevant details for potential partners and investors to know when they are deciding on getting involved with you and your business. Aim to build your know-like-trust factor.

Step 3: Management & Operations

The management & operations section of your gym business plan is where you will present the plans for your employee ladder . What are the positions you need to fill and what sorts of skills will these employees need to have in order to make your gym successful? Think beyond your PTs and group class instructors. You’ll also likely need sales and membership personnel, marketing managers, customer service professionals, a maintenance team, etc. What responsibilities will each of these employees have?

Set up and present an organized chart that breaks down all of your staff positions, detailed descriptions of their roles, compensation structure, and benefits plan as well as incentives to attract and retain quality employees.

If you already have your management team in place, be sure to expound upon their individual skill sets, relevant experience and how they will contribute to the success of your gym.

Step 4: Market Research and Marketing

The market research and marketing step is the part of your gym business plan where you will explore: Your niche (the clients you will cater your gym to) Current trends in the industry that your target audience is looking for What your competitors are offering and for how much Plans for marketing your gym

Market research

You must start with market research and dive into who is in your local market and who you are focusing on as your target audience, your ideal clients - your niche. Are they students, working professionals, stay-at-home moms or dads, etc? Or will you target a specific group of fitness enthusiasts: bodybuilders, yogis, cyclists, etc. How do you plan to successfully fit your gym into your decided upon demographic?

When your target market is sorted out you can start researching your competitors. Direct competitors are those with gyms or boutique studios similar to yours in your area who are also going after a similar target audience. What are their strengths and weaknesses? How does your gym compare to theirs? What do your target clients have to say about them?

Once you are comfortable with your niche and your offerings in comparison to those of your direct competitors, the marketing portion is all about how you plan to get your gym and its services/amenities in front of this target audience and how you will attract them to your gym. It’s time to let your creativity shine! A detailed strategy, who will be handling this job, plus estimated cost is ideal. Your marketing strategy might include social media marketing, email marketing, TV or print advertising, sponsorships, loyalty plans, membership promotions, referral programs and more. Marketing can be any idea you have that will help make your gym stand out, build your customer’s loyalty and increase your revenue at the end of the day.

Step 5: Services and Amenities

In your company overview you briefly described the services and products you plan to offer at your gym, and here you will expound upon these services. This will give a clearer picture of what your gym or studio will look like for your members. Services will cover everything from membership options, group classes and personal training options to the specific exercise equipment you will offer. Amenities will include things like lockers, spa services, a swimming pool, child care options, etc. Products are physical items you plan to offer for additional revenue opportunities: juices, snack bars, protein powders or pre-workout, t-shirts, towels, etc.

Go into details about how the services you offer will fill the needs of your target audience and describe the benefits of each. Finally, create a pricing list that clearly outlines the costs for each product and service. This will make it easier when you get to the financial forecast and strategy section.

Step 6: Financial Forecast & Strategy

Finances are easily the most important part of your business, and are generally how you will measure success and profitability. The financial forecast and strategy is where its time to get real with an in-depth and up close projection for the future of your gym.

First, where do you need to spend your initial capital? Rent or building maintenance/upgrades, hiring costs, gym equipment, operational costs for the first 3-4 months, legal fees and marketing costs among others are all places you’ll want to investigate. Give a realistic cost estimate next to each. Then, add it all up: how much money will you need to successfully launch your gym?

Next you will dive into where your income will come from. Estimate how much your services (memberships, classes, PT, physical products) will bring in. The idea here is to show your potential partners/investors/employees that you have a plan with a solid ROI.

Finally, use all of this information to project a sales forecast for the first, second and third year in business breaking down each month as well as annual earnings and expenses.

Step 7: Payment Options

A big thing to think about is what sort of gym management software you will use. A streamlined system like Virtuagym , that automates membership billing and other fees, simplifies online and onsite scheduling, enables easy booking for classes or PT sessions, as well as other backend processes not only looks great for potential investors, it also serves to increase member retention and improve the overall client experience.

Step 8: Funding

You will round out your business plan with a clear description of where any start-up capital is coming from. Personal savings, bank loans, partners, sponsorships or even “soft loans” from family members or friends are all resources you might consider.

You’re Almost There!

Starting a gym has a multitude of benefits but is no easy task to undertake. That said, with the right business plan your rewards will far outweigh your challenges and you can look forward to a happy and successful future within the fitness industry. Refer back to your business plan whenever you need to make important decisions, secure new investments or show new partners or employees the greater vision and direction of your business.

A Personal Checklist:

Feel free to use this checklist to help you through the next stages of running your own gym. Refer to it throughout the development of your business to ensure you don’t miss a thing.

• Write business plan
• Register business
• Apply for business license and permit
• Open business bank accounts
• Select online payment platform
• Obtain tax payer’s ID
• Purchase insurance
• Organize rental space / purchase facility
• Purchase / rent equipment
• Secure funding
• Set up Direct Debit service
• Recruit employees
• Draft contract documents and any other legal documents required
• Design company logo and brand
• Develop website
• Write website content
• Create accounts on social media platforms
• Design leaflets and brochures
• Organize branded uniforms
• Hold launch party!

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Contact Information

Nicolas Fisher

Nick is a Marketing Specialist with a keen eye for market introspection and relevant insights. Adept in relating to people, he often seeks ways in which we can use human relations to bring our businesses and clients closer together to create lasting bonds by using his insights and expertise in the industry.

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Gym Business Plan Template [Updated 2024]

Gym Business Plan

If you want to start a gym or fitness center or expand your current gym business, you need a business plan.

The following sample fitness center business plan gives you the key elements to include in a winning business plan for a gym.

You can download our Gym Business Plan Template (including a full, customizable financial model) to your computer here.

Gym Business Plan Example

Below are links to each of the key sections of a solid gym business plan:

• Executive Summary – The executive summary is a brief overview of your gym, including your company’s mission statement, target market, objectives, and goals. If you are seeking potential investors, it is important to make a good first impression with this section.
• Company Overview – The company overview provides an overview of your company, including its history, legal structure, business model, and ownership structure.
• Industry Analysis – Conducting an industry analysis is critical to understanding the market opportunity for your business. This section should include a description of the fitness industry, its size, growth potential, and key players.
• Customer Analysis – This section of your fitness business plan should describe your target customers, including their demographics, needs, and fitness habits.

Download our Gym Business Plan Template and learn how to start a gym business plan.

• Competitive Analysis – Conducting a competitive analysis is essential to understanding the landscape of the market you are entering. This section should include an overview of your direct and indirect competitors, their market share, their strengths and weaknesses, along with your competitive advantage and unique selling point.
• Marketing Plan – Your marketing plan should describe the marketing strategies you plan to use for reaching your target audience. This section should include your pricing strategy, membership fees, advertising and promotional strategies.
• Operations Plan – In the operations plan, you should describe your fitness center, exercise equipment and fitness classes, as well as your personal trainers and their qualifications.
• Management Team – This section of your gym business plan should describe the experience and qualifications of your management team.
• Financial Plan – The financial plan should include your financial projections (income statement, balance sheet and cash flow statement), as well as how you plan to secure funding such as bank loans.

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Gym Business Plan Sample

Gym Business Plan Template

Gym operations plan.

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your gym such as selling new memberships, conducting promotions, teaching classes and cleaning the equipment.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to secure your 1,000th member, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee, launch a new location or launch a new series of fitness classes.

GYM BUSINESS PLAN OUTLINE

• Gym Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan
• 10. Appendix
• Gym Business Plan Summary

Other Helpful Business Plan Articles & Templates

Small Business Trends

How to open a gym: a step by step guide.

Opening your own gym business can be a rewarding venture, allowing you to cultivate a passionate fitness community and make a positive impact on people’s health. Whether you’re a fitness enthusiast or an entrepreneur looking for a profitable venture, this guide will help you navigate the process of starting a gym business .

Understanding the Fitness Business Landscape

Fitness instructors have witnessed its resilience in the ever-evolving fitness industry, even during challenging economic times. Today, people have a heightened appreciation for health and fitness, significantly boosting the industry. This growth presents a unique opportunity for aspiring gym owners, particularly fitness instructors, to capitalize on the rising demand.

However, it is crucial to remain mindful of market saturation and the need to distinguish oneself from competitors by offering unique and compelling fitness experiences. By acknowledging these factors, fitness instructors can navigate the industry’s landscape and stand out in a crowded market.

The Current State of the Fitness Industry

The fitness industry has shown remarkable resilience, even in challenging economic times, as people now more than ever recognize the value of health and fitness. This growing awareness has fueled the industry’s expansion, presenting a ripe opportunity for aspiring gym owners. However, they must be mindful of market saturation and the need to differentiate their offerings in order to succeed.

By conducting thorough research, identifying gaps in the market, and crafting a unique selling proposition, aspiring gym owners can stand out in a crowded industry. Additionally, investing in high-quality gym equipment, selecting an optimal location, and establishing relationships with personal trainers can contribute to the success of their own gym.

The Pros and Cons of Owning Your Own Gym or Fitness Center

Starting a gym business can be immensely rewarding. You’re providing a service and creating a community centered on health and wellbeing. However, owning a gym also comes with challenges. These include high overhead costs, maintaining a steady flow of clients, managing staff, and keeping up with the latest fitness trends.

What are the Daily Responsibilities of a Gym Owner?

A gym owner’s daily tasks can vary widely, from managing staff and overseeing gym operations to ensuring member satisfaction and maintaining equipment. Other responsibilities may include marketing, member recruitment and retention, and dealing with financial aspects like billing and bookkeeping.

How to Start a Gym

Opening a gym requires careful planning and execution to ensure a successful venture in the fitness industry. To embark on this journey, aspiring gym owners need to follow a series of essential steps that encompass market research, business planning, securing funding, finding an ideal location, and obtaining the necessary gym equipment. Let’s delve into each step in detail:

Market Research and Feasibility Study

In-depth market research provides valuable insights into the local fitness market, including consumer preferences, competition analysis, and emerging trends. A feasibility study assesses the viability of your gym business idea by analyzing factors such as market demand, potential revenue streams, and operational costs. This information empowers you to make informed decisions and refine your business strategy.

Creating a Gym Business Plan

A well-crafted gym business plan serves as a roadmap for your venture. It outlines your unique business concept, target market demographics, marketing and sales strategies, and financial projections. This comprehensive document not only guides your day-to-day operations but also plays a crucial role in securing financing from potential investors or lenders who want to assess the viability and profitability of your gym business.

Securing Funding for Gym Startup Costs

Launching a gym involves significant startup costs, including facility leases, equipment purchases, staff salaries, marketing expenses, and operational overheads. Securing adequate funding is essential for a successful launch. This may involve a combination of personal savings, bank loans tailored for small businesses, partnerships with investors who believe in your vision, or even crowdfunding platforms that allow supporters to contribute financially to your gym startup.

Finding the Ideal Location

Selecting the right location for your gym is paramount to attracting and retaining members. Consider factors such as high visibility, convenient accessibility, proximity to your target market, and ample parking. Additionally, evaluate the local demographic and competition in the area to ensure your gym fills a gap in the market and appeals to your desired customer base.

Acquiring the Necessary Gym Equipment

Investing in high-quality gym equipment is crucial for providing a top-notch fitness experience. Consider the needs and interests of your target market when selecting equipment. Optimize the available space by choosing versatile and space-efficient machines. It’s essential to balance functionality, durability, and cost-effectiveness when acquiring gym equipment to ensure member satisfaction and operational efficiency.

Hiring and Training Staff

Your staff members play a pivotal role in delivering a positive member experience. Hire qualified fitness professionals and provide them with thorough training to ensure they possess the necessary expertise to guide and motivate gym members. Establish clear communication channels and a supportive work environment to foster teamwork, professionalism, and exceptional customer service.

M arketing and Promotion

Developing a strong marketing and promotion strategy is vital for attracting new members and creating brand awareness. Utilize digital marketing platforms, social media channels, and local advertising to reach your target audience. Consider offering promotional deals, referral incentives, and strategic partnerships with local businesses or fitness influencers to increase visibility and drive membership growth.

Gym Setup and Layout

Optimize the layout of your gym to create an inviting and functional space. Strategically arrange equipment to maximize flow and accessibility. Create designated workout zones, such as cardio areas, strength training sections, and functional training spaces. Prioritize member comfort and safety by ensuring proper ventilation, lighting, and sanitation facilities.

Legal Aspects and Insurance

Ensure compliance with all legal requirements and regulations for operating a gym. Obtain the necessary permits and licenses specific to your location. Protect your business and members by securing appropriate insurance coverage, including liability insurance and workers’ compensation insurance. Consulting with legal professionals specializing in gym businesses can help navigate these complexities.

Grand Opening and Beyond

A successful grand opening generates excitement and establishes a strong foundation for your gym business. Host engaging events, offer exclusive membership deals and leverage social media to create buzz and attract potential members. After the initial launch, focus on sustaining momentum by continuously improving your services, engaging with members, and adapting to evolving fitness trends. Regularly assess your business performance and make strategic adjustments to ensure long-term success in the competitive fitness industry.

How Much Does it Cost to Open a Gym?

Starting a gym involves several costs, including lease or property purchase, equipment, staff wages, and marketing. Your potential revenue streams include membership fees, personal training services, and ancillary revenue from merchandise and refreshments.

Pro Tips and Insights from Successful Gym Owners

Hearing from those who have been there before can provide invaluable insights. One key piece of advice from successful gym owners is to focus on member experience, as this can significantly impact member retention and word-of-mouth referrals.

Building a Strong Community

Building a strong community in your gym can contribute to member satisfaction and retention. Hosting events, creating a supportive environment, and fostering connections between members can help build this sense of community.

Keeping Up with Fitness Trends

Staying up-to-date with fitness trends can help keep your gym relevant and competitive. This could involve offering new fitness classes, incorporating new workout equipment, or leveraging new technologies like virtual reality or fitness apps.

Building a Fitness Brand

Developing a strong fitness brand involves defining your unique selling proposition, telling your brand story, and ensuring a consistent brand experience across all touchpoints. Engaging with your customers, both offline and online, is also key.

The Role of Gym Management Software

Gym management software can streamline your business operations, help manage member relations, and allow for efficient administrative tasks. From scheduling classes to managing memberships and payments, these systems can be invaluable in running a gym efficiently.

FAQs: How to Open a Gym

How much does it cost to start a gym.

The cost of starting a gym can vary significantly depending on factors such as the location, size of the facility, and the range of amenities and services offered. Costs to consider include property lease or purchase, gym equipment, renovations or build-out expenses, staff wages, marketing and advertising expenses, and insurance coverage.

How Profitable is Owning a Gym?

The profitability of owning a gym depends on various factors such as the number of active members, effective management of overhead costs, pricing strategy, and the ability to generate secondary revenue streams. Additional sources of revenue can include personal training sessions, group classes, retail sales, partnerships with wellness professionals, and supplementary services like juice bars or spa facilities.

What Licenses Do I Need when Opening a Gym?

The licenses required when opening a gym can vary based on the specific location and local regulations. Common licenses and permits typically include business licenses, building permits for any construction or renovation work, health department permits for maintaining cleanliness and sanitation standards, and possibly others such as zoning permits or special permits for specific activities like childcare services.

How Can I Attract Members to My New Gym?

To attract members to a new gym, effective marketing strategies play a crucial role. This may involve developing a strong online presence through social media platforms and a well-designed website, offering competitive pricing and membership packages, providing exceptional customer service and a high-quality fitness experience, and fostering a strong sense of community through member engagement programs, events, and fitness challenges.

What Kind of Insurance Do I Need for a Gym?

Gyms typically require several types of insurance coverage to protect the business and its members. This includes general liability insurance to cover accidents or injuries that may occur on the premises, professional liability insurance to protect against claims related to personal training or fitness instruction, property insurance to safeguard equipment and facilities, and workers’ compensation insurance to cover employees in case of work-related injuries or illnesses.

How to open a gym franchise with no money?

Opening a gym franchise with no money upfront can be challenging, as franchise opportunities typically require a significant investment. However, some franchisors may offer financing options or partnerships with lenders to help prospective franchisees secure funding. It’s important to thoroughly research and understand the financial requirements and options available before considering a franchise opportunity.

How do gyms make money?

Gyms primarily generate revenue through membership fees paid by their members. However, gyms can also diversify their income streams by offering additional services such as personal training sessions, group classes or specialty programs, selling merchandise like apparel or supplements, providing amenities like saunas or tanning beds for an additional fee, and operating a café or smoothie bar within the facility.

Opening your own gym can be a challenging but rewarding venture. By understanding the industry, planning carefully, and executing your plan effectively, you can create a thriving gym business. Good luck on your fitness entrepreneurship journey!

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Research-Backed Strategies to Boost Your Gym’s Revenue

Candice Landau

6 min. read

Updated April 9, 2024

If you want to own your own gym or fitness center, you’re probably trying to figure out how you’re going to bring in customers, and keep them. If so, you’re on the right track.

As you will shortly see, member retention is key to the success of a fitness center. Luckily for you, there are multiple things you can do to win over your customers.

To help you out, we’ve hacked our way through the forest of general (and generic) ideas to find you only those strategies that have been proven to boost revenue.

• 1. Focus on providing epic customer service

This one almost goes without saying, but we’re going to say it anyway as the statistics in favor of excellent customer service are overwhelming.

According to a 2010 Customer Experience Report  by Harris Interactive/Right Now, great service, delivered time and time again is even more important than competing on price. In fact, it’s defensible against the stiffest competition.

By making customer satisfaction a key performance indicator, you are much more likely to focus on implementing strategies that will foster customer loyalty, and ultimately result in additional referrals to your gym (don’t forget the importance of word of mouth referrals).

While the benefits of good customer service are all encompassing, they’re also big profit drivers—86 percent of consumers will pay more for a better customer experience.

The same is true vice versa. Provide bad customer service and you could lose big time, especially if you don’t address complaints—50 percent of consumers give a brand only one week to respond to a question before they stop doing business with them.

So, go above and beyond and keep your members coming back with epic customer service.

• 2. Get people to attend the gym more often

Did you know that by increasing your customer retention rate just five percent, you can increase profits by 25 to 95 percent?

In the fitness world, it’s no secret that attendance and retention are linked. When members feel they’re not getting value out of their membership, they attend less, and over time stop attending entirely.

This is why it’s important to pay attention to your attendance numbers. If your members stop attending, you’re likely not meeting their expectations. Obviously, there could be many things at play here: there are nicer facilities elsewhere, you don’t offer the right classes, they don’t like your staff or personal trainers, and so on.

Your best bet then is to figure out why people are canceling, or attending less. A great way to do this is to encourage your front desk staff to recognize signs that someone is losing interest and get them to talk to your customers to find out why.

You could also invest in gym attendance software to automate much of your tracking.

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• 3. Set the right hours

While your gym’s own attendance numbers are going to tell you a lot of things, when people are attending (and the number attending each day) is going to tell you a lot about the specific hours you should keep, and even the right times to offer classes.

Attendance patterns at fitness clubs vary, but broadly speaking, peak hours are 6am-8am, 12pm-2pm, and 5pm-7pm. It makes sense when you bring work into the picture—those times encompass “before work,” “lunch break,” and “after work.”

When it comes to the day of the week, attendance is usually highest on Monday, dropping steadily as the week progresses with Sunday attendance lowest of all.

As we’ve previously stated how important attendance is, the more you can find the right hours and get people to attend, the more likely they will be to stick around. In fact, according to a 2001 study by the Fitness Industry Association, the more often people attend initially, the lower the reduction in attendance.

Because attendance patterns are usually established in the first three to six months of membership, consider how you can best encourage people to keep coming back for more. You could do this by focusing on loyalty-building strategies for a time. This includes doing things like keeping members informed, creating a sense of community, and helping them save money.

• 4. Get creative with your marketing

Creativity is the lifeblood of good advertising.

It differentiates a company, it makes seemingly boring products or services seem much less boring, and it has the powerful ability to change how people feel about you, or the services your company offers.

One of the great things about managing a gym is that you have multiple different niches you can target. So, rather than thinking about how to market your business in general, hone in on the specifics and get creative—there are dozens of ideas out there.

For example, you might offer a “summer slimdown” Facebook promotion, or a membership anniversary special, a corporate challenge, a free training day, meal ideas by email, a weight loss challenge and so on. The possibilities are endless.

Remember, your advertising is all about communicating the right message. So, don’t go getting caught up in out-there creative ideas if they’re not relevant.

• 5. Diversify your revenue streams

A great way to spread your risk and increase revenue is to have multiple profit centers—that is, multiple ways to bring in revenue. Why rely on gym memberships alone when other areas could pad your budget?

An additional benefit to multiple profit centers—according to Mike Feinman, Executive Vice President and COO of Gold’s Gym—is that these other revenue streams add value to your membership and often enhance results for those who enjoy them. Of course, you have to do it right or it may well have the opposite effect and decrease your profits.

As you think about adding additional profit centers to the mix, consider what your customers are asking for.

Today, fitness centers offer everything from tanning and personal training, through group fitness, juice bars, massage, and merchandise. In fact, many gyms or fitness centers will even work with local businesses, building partnerships that refer business. If you’d like to broaden your reach or raise awareness but don’t have the extra cash to invest in a juice bar, consider taking this route.

If you do diversify your revenue stream, one of the first things you will need to ensure you have in place is an excellent sales team or at least front desk staff who have been trained on how to upsell your other services. After all, if these new services are not front and center in your marketing or gym, how will your members know they even exist?

What’s next?

Beyond these five pointers, stay abreast of the latest fitness industry trends. This isn’t a revenue-driving strategy per se, but it is a strong recommendation. By keeping up on the latest trends, you give yourself a competitive advantage.

This doesn’t necessarily mean going out to invest in the latest machinery, but it may mean incorporating a different type of class into your group fitness offerings—like Zumba, for example.

In fact, you wouldn’t believe some of the crazy things that have become popular in this industry of late. Paddleboard yoga, anyone?

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Candice Landau is a marketing consultant with a background in web design and copywriting. She specializes in content strategy, copywriting, website design, and digital marketing for a wide-range of clients including digital marketing agencies and nonprofits.

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Gym Industry’s New Era: Software-Driven Strategies to Enhance Cash Flow

A I and automation software have taken over the whole gym and fitness industry. Gym management software offers the best solution to enhance your business in this compact industry. Through software integration, gym owners are not only streamlining operations but are also generating more revenue.

In 2022, the U.S. fitness and gym industry generated a revenue of 30.6 billion U.S. dollars. However, in 2023, it was estimated that the generated revenue would be around 30.8 billion U.S. dollars, higher than the previous year.  An evolving industry landscape has shifted the industry demand significantly.

Gyms and fitness clubs have changed their business strategy to meet consumer demands regarding time and flexibility by focusing on low-price and contract-free memberships that meet consumers’ needs based on rapid growth.

Software driven-strategies to enhance the business

To ensure the financial stability of your company and cover all operational costs, it is crucial to improve your business performance and revenue. This will enable you to pay your employees’ salaries sustainably. It’s important because it is the mainstream way to boost your business and allows you to pay your employees’ monthly wages and cover all your operating expenses.

A gym’s operating costs can be high sometimes. So, it is imperative to consider how much it costs to rent your space, lease your equipment, pay your employees’ wages, market your services, and pay your software subscriptions. The proper operation of your business is only possible with these expenses.

Despite these expensive costs, you can optimize your cash flow and achieve tremendous success in gym billing and membership software or any health club membership software by following proven ways.

Integrate POS system to ease the billing process

Selecting the right point-of-sale (POS) system is essential for development in the service-based industry, particularly in such a competitive market. However, we need a complete solution that deals with all the basic programming related to point-of-sale, including all the payment systems.

A POS system that seamlessly manages payments and financial transactions is integrated with gym software. You can easily manage invoices and payments from a single platform by using gym management software. To accommodate customers’ preferences, the gym pos system allows payments to be made using a variety of payment methods.

Customers can, therefore, use cash, credit cards, and online banking to send payments to the POS system.A key factor in the expansion of the gym industry is the POS system. It enables business owners to keep tabs on costs and earnings and make astute decisions to oversee operations and expand their enterprise. It also provides a great deal of assistance to owners who want to reduce expenses while increasing revenue.

Offer discounts for Annual Payments

Well, who doesn’t enjoy discounts? Your potential customers might also be looking for the same. It is something that will even help you to retain your loyal customers. Offer your gym members a discount on their yearly fees if they pay in one lump sum. This helps secure all payments and is a great idea to draw in new business, especially if your gym still needs to be discovered.

Scheduling 

Automated class scheduling, which assigns class slots to owners based on information gathered and examined from clients during registration, is incredibly convenient for both owners and customers. Thus, the requirements and customer demand are taken into consideration when planning the class.

The clients need to update their course login information. Clients find manual registration inconvenient, and it increases the administrative burden. Many customers prefer online booking and registration. This feature also contributes to higher registration rates. A feature in gym management software helps with waitlisted client management by alerting them to available times and making sure they have the potential to make money.

Membership 

Choosing the right membership software can get tricky as you must select an option that perfectly suits and benefits your gym business. With any suitable software, gym businesses can improve their relationship with clients. There are various functionalities that any gym software can perform, which help automate the gym’s management and ease the working processes for staff members. However, the gym membership management software allows you to provide your members with the best-ever experience with your gym.

Retention 

Behind every successful service-based business are loyal clients who help gym owners build a steady growth rate and smooth pace to ensure profitability. Consider that client retention is optional for any business. Retained customers help build up the gym’s market value by keeping loyal clients with less expenditures and more effectively. To retain loyal customers, gym management plays an essential role.

Virtual fitness 

Virtual fitness is estimated to reach over 106.4 billion in 2030; however, in 2023, the growth rate of the industry was around 5%. Moreover, with this growth rate, the fitness industry is at 26.72% CAGR.

In any case, 2024 appears to be another promising year for studios and gyms to keep up a consistent clientele rate. However, a significant increase in the CGR is anticipated in 2024. The audience’s access to modification technologies, such as three-dimensional visualization and unique exercise experiences, deserves all the praise for this.

AI Incorporation

There is no doubt that artificial intelligence is being used in current technological trends. Fitness software has evolved to become your employee for all hours of the day. Research shows it can increase the activity level to 82%. These days, AI is used for a variety of tasks. As it can automate all functions and provide marketing campaigns based on current market trends. AI integration is used to put everything together, including training schedule scheduling and client motivation.

Integrate gym software to keep your cash flowing

As you plan for your business’s future, keeping track of your cash flow is essential. Don’t forget to forecast your cash flow so you can make informed decisions about your finances. By predicting your incoming and outgoing cash, you can plan for any potential shortfalls or surpluses and adjust your strategy accordingly.

Stay on top of your cash flow, and you’ll be better equipped to navigate the ups and downs of running a successful business. From this estimation, you can put a plan in place for slower months, allowing you to be more proactive than reactive.

Manage gym staff Efficiently

One way to ensure that your gym runs smoothly and efficiently is by minimizing and effectively managing your staff. You can improve your gym’s overall performance and profitability by streamlining your team. Alongside by ensuring everyone works together towards a common goal.

Some tips to achieve this include having clear communication channels. Additionally, establish performance metrics and provide your staff with online fitness trainers and support. With these strategies in place, you can create a cohesive team. A team that delivers the best possible experience to your gym members.

In conclusion, optimizing cash flow is crucial for the success and growth of a gym business by implementing efficient billing and membership software. However, gym owners can streamline their payment processes and reduce the risk of late payments. Additionally, offering discounts for upfront fees and monitoring accounts receivable can boost revenue per member and improve cash flow.

It is also essential to keep track of operating costs and regularly prepare a cash flow statement to assess better. Additionally, to understand the cash inflows and outflows of the business. With these tips, gym owners can optimize their cash flow and experience tremendous success in their business. We know how important it is to have a detailed perspective of your business. So we can provide you with the assistance you need to enable it to run smoothly.

This article is published by NYTech in collaboration with Evertise Studios.

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Faculty of Health

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Develops an understanding of small business and entrepreneurship in the allied health, sport and fitness industries in Australia, techniques for starting new ventures including undertaking relevant research, and provides students with the opportunity to develop and present a business plan related to an allied health or sporting/fitness enterprise.

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• Identifying business opportunities
• Getting started in small business
• Market analysis and marketing mix
• Business plan and pitch basics
• Financial and other considerations
• Case studies in small business

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On completion of this unit, students should be able to:

explain the challenges facing entrepreneurs when starting a new business in Allied Health, Fitness and Sport industries

outline effective analysis tools for determining business viability

apply strategic marketing techniques to a new business idea in Allied Health, Fitness and Sport industries

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Millennials and Gen Z's trendy new splurge: groceries

• Groceries are the hottest new splurge category for Gen Z and millennials.
• Younger generations spend more on groceries than other categories, a McKinsey report says.
• But all generations are feeling the pinch of inflation at the grocery store.

Splurging once meant spending money on buzzy restaurants, expensive vacations , and designer clothing. These days, what's considered splurge-worthy falls into a more humble category.

Groceries are shaping up to be a top spending priority for younger generations, a February report from McKinsey & Company found.

The firm asked over 4,000 people, from baby boomers to Gen Zers, about the categories they intend to splurge on this year. Groceries ranked highest for millennials and Gen Zers, outpacing restaurants, bars, travel, beauty and personal care, apparel, and fitness.

Related stories

Millennials are also becoming parents, which means they spend more on themselves, their partners, and their children. It's a notable shift from 2018 when older generations like baby boomers and Gen Xers still spent more on groceries than millennials.

Gen Z, meanwhile, said they often choose high-quality snacks and beverages, which makes for expensive grocery bills.

One 23-year-old Gen Zer told Business Insider by text that he spends about $130 on groceries for a week and a half. "Fancy sodas and drinks" and "random snacks at Trader Joe's" account for the bulk of the bill. He also said he spends about $35 on protein bars.

The success of the canned water brand Liquid Death is an example of young people's willingness to spend on flashy food and beverages. The brand shot up to a valuation of $1.4 billion thanks to a recent round of funding, Forbes reported . Peter Pham, an investor in Liquid Death, previously told Business Insider that part of the brand's success comes from its appeal to younger generations.

"The healthy food-and-beverage space has historically been a stale category filled with boring brands," Pham told BI. "This creates a lightning-in-a-bottle moment for disruptive brands who know how to tap into culture and talk to Gen Z and digital natives."

All generations are feeling the pinch of inflation at grocery stores and for goods and services in general. The typical American household would need to spend $445 more a month to purchase the same goods and services as a year ago, a report from Moody's found .

Correction: April 8, 2024 — An earlier version of this story misstated the age groups surveyed in the McKinsey report. It surveyed baby boomers to Gen Zers, not baby boomers to Gen Xers. The story also misstated the findings in the Moody's report, which said the typical American household would need to spend $445 more a month this year on goods and services, not just groceries.

Watch: The surprising reason millennial parents are miserable

• Main content

Money latest: Prepayment meters now have cheapest default tariff - should you switch?

The default tariff for prepayment meters is now cheaper than other types of meter - so should you switch? You can read this and our other weekend features, and leave a comment, below - and check back on Monday for hourly updates on consumer and personal finance news.

Sunday 14 April 2024 17:19, UK

Weekend Money

• How to get cheapest energy bills after price cap tweak most people don't know about
• 'It's cost me £8,000 to get out of an abusive relationship' - Readers respond to divorce story
• How to earn thousands letting film and music stars shoot in your home
• Money news of week: Blow for expats in Spain | Where will Labour get money from? | Shell could quit London

Best of the week

• How your neighbour's garden could wipe up to £57,000 from your house price
• Could I build a home gym for less than my gym membership?
• Britons are buying homes, having babies, getting married and retiring later - but one key life event is happening earlier
• 'WTF is going on with the price of olive oil?'
• Cheap Eats: Great British Menu legend shares ultimate toastie recipe
• Money Problem: The monthly charge on my leasehold flat has gone up by more than £60 a month - what are my rights?

Ask a question or make a comment

Looking for some longer Money reads for your evening/commute/lunch break?

Here's four from the last few months you might like...

Cost of a pint

Many of us have noticed the price of pints creeping up in recent years. 

The cost of draught lager has gone up nearly 30% since January 2019, according to the Office for National Statistics.

The beer doesn't taste any different despite the increase in price - so where exactly does that £6-7 for a pint go? 

We've spoken to experts to get a break down...

Motherhood penalty

The word "penalty" isn't one that should go hand-in-hand with motherhood. But deep-rooted structural inequalities are causing women to save less for retirement when they become parents.

Mothers face a pension penalty of up to £183,000 by taking time out of work to raise children, according to analysis by the pensions and investment company Royal London...

A survey has revealed the energy gripes that cause the most arguments in British households...

Quitting your job to go travelling

You could be forgiven for feeling a twinge of jealousy when you see someone packing it all in to go travelling for a few months. 

Perhaps it's made you wonder if you could do the same thing yourself. 

Of course, it won't be realistic for everyone and the reality is it takes a lot of planning and saving. For many people during the cost of living crisis, it's simply not possible to save much, if at all.

But if you're wondering where to begin (and how much you might need to save), we've got some advice from two travel bloggers who have been there and done that...

By Brad Young, Money team

Earning up to £60,000 a year for letting Stormzy film a music video in your kitchen or Paloma Faith play with Lego in the living room might sound farfetched to homeowners unfamiliar with the shoot locations industry. 

But every star, studio or big brand that wants to film in a residential property needs someone willing to offer up their home for the day - and they'll pay between £700 and £3,000 for the privilege.

Homeowners and shooting agencies have spoken with the Money team about the promises and pitfalls of working with the likes of Disney, Netflix and ITV to take advantage of this niche income stream. 

Among them was Ed Reeve, a photographer from Hackney, who has had stars such as David Attenborough, Stormzy and Jim Broadbent walk through his doors in the 17 years he's been renting out his home. 

"It has been a really positive experience on the whole for us. Generally, the shoot crews are really lovely people and they're very respectful of your home," said Mr Reeve, who is registered with location agency 1st Option.

He hosts between 12 and 20 productions a year. Most bring in £1,000 for a one-day shoot, but some earn him up to £3,000 per day or last multiple days.

"We've met lots of interesting people," said Mr Reeve, including Gillian Anderson, who stars in Sex Education, Hugh Bonneville (Downton Abbey) and Claire Foy (The Crown).

After Stormzy filmed a music video, Mr Reeves said that "every grime artist wanted to shoot here".

David Attenborough once turned up early for a BBC shoot, resulting in the pair sitting down for a cup of tea and Mr Reeve introducing his three-day old daughter to the presenter.

"He held her and looked at her with delight... it was a really special moment," said Mr Reeve. 

Shoots can result in scratches around the interior, but Mr Reeve said he uses some of the money to redecorate – or in one case, let a Delux advert do it for him. 

'It's never free money'

Less enthusiastic about the industry was Emer Stamp, 48, a children's author from London, who has hosted for two years.

"You think, 'Oh yeah, my house is going to be rocking', and everyone comes round and goes 'Your house will be perfect', but for whatever reason, it's not.

"My takeout is it's not as easy to make money as you think."

Ms Stamp said her home had been chosen for three productions, including a Dell shoot and a Lego advert starring Paloma Faith, earning her approximately £6,000. 

Hosting also puts your schedule at the mercy of production companies – and sometimes they may not show up, said Ms Stamp.

"Like anything, you think it's free money but it's never free money."

So what does make a location popular? 

Becky Butler, managing director at agency Location Collective, said there is demand for average-sized family homes with a 60s/70s vibe and unusual features. 

And while a lot of the homes listed by location agencies look expensive, that was far from a deal-breaker. 

"All the practical side of things are as important, if not more so, than the aesthetics of the location," said Ms Butler.

Parking, easy-going neighbours and having one large room for equipment goes a long way with clients.

Getting the combination right can create "a fantastic additional income stream", said Jennifer Marshall, of Shootfactory, which has connected homeowners with everyone from Little Mix to Killing Eve. 

"We have properties that through our company have earned anywhere between £20,000 and £60,000 a year."

Much of the industry is based in London but, between them, the three agencies contacted by the Money team have organised filming in Manchester, Birmingham, the Midlands, the Home Counties and coastal areas.

Both Ms Marshall and the team at Location Collective said having a neighbour willing to get in on the action can be a real selling point.

This might mean a second house on the same street for a TV show, or simply somewhere to house the production team.

"Being able to let them pretty much take over is quite key. Sometimes they might have demands like painting or moving furniture," said Lily Gonnissen, head of business development at Location Collective. 

Being quick to respond to questions, contactable during the working day, and able to accommodate viewings at short notice was a top priority, said Ms Gonnissen. 

"Be friendly and welcoming - brands remember a good owner," said a spokesperson for 1st Option: "And make sure the house is clean and clutter free before any shoots."

The default tariff for prepayment meters is now cheaper than other types of meter.

It follows the energy price cap update to unit rates and standing charges from 1 April.

Uswitch data shows 56% of households don't know about the change.

What do you need to know?

Prepayment meters have traditionally been a more expensive way of paying for energy - but now prepayment standing charges have been lowered to match those for direct debit customers.

Because prepay units are cheaper, people with these meters should pay around £47 less a year than those on direct debits (£1,643 versus £1,690).

Customers who pay when they get a bill are forking out the most - around 5.8p more per day on the standing charge than those with direct debits.

Should we all get prepayment meters?

As energy costs come down, suppliers like EDF Energy have now started offering fixed deals lower than the price cap - and as things stand these are the cheapest options for many.

Eon Next's Pledge tariff promises to be 3% below whatever the price cap is for a year.

There can be catches if you want to leave these fixed deals (though Octopus doesn't charge them) - so make sure you do your research.

How many people have prepay meters?

The number of prepayment meters has fallen almost 8% from the peak in 2019, but there's still more than seven million gas and electricity units in action.

In total, 195,503 prepayment meters were installed in 2023.

Are people swapping?

Uswitch has some research that says young people (18 to 34) are far more likely to go for prepay meters - 51% would consider it, compared with 5% of over-55s.

Will Owen, energy expert at Uswitch, said: "Prepayment meters have got a bad reputation among some households, but changes to the price cap mean that their default tariffs are now cheaper than standard credit meters.

"With prepayment meters, you pay for your energy before you use it, and while there are emergency provisions, it does mean it is possible to be cut off if you have not put enough money into your account. 

"This means that younger consumers and vulnerable people are at greater risk of disconnecting themselves from their energy supply when money is tight.

"Direct debits also allow consumers to spread out their costs evenly throughout the year, meaning bills won't rise significantly in the winter when energy usage is highest."

We've had a mixed mailbag of comments this week - with readers getting in touch about pensions, tipping and divorce among other things.

Following this feature on divorce costs last weekend...

...we had dozens of comments...

So many people must be trapped in abusive relationships. A loan has helped me get away - covering legal costs, paying the bills/mortgage on marital home whilst being unable to stay and finding thousands for a rental. Costs so far about £8k - only one year in and at decree nisi. H

Since broken families are ever more common why isn't the government doing something to help divorcees get back on the housing ladder like first-time buyers are? Countless thousands, despite having the income, are doomed to rent expensive family homes. Men especially! Twice Divorced Of Surrey

Trust me, it costs a whole lot more than £30k, stay away from solicitors, work through it yourself. Toby

When one party will not communicate with the other, this makes the process much more expensive. Around £80k in solicitors and barrister fees. Vbkinguk

Another story that cut through was London restaurant chain Ping Pong scrapping tips - months before new legislation will require restaurateurs to give staff 100%.

Readers don't seem impressed...

Best thing employees and customers can do is boycott them. Just goes to show what they actually think of their staff. Dave

I don't want to eat somewhere that doesn't look after its employees. Jack

I'm sure patrons and staff will vote with their feet! How disgraceful to remove tips, probably as the owners aren't getting any cut of their staff's hard work! Elijah

We've reported extensively on the rise to the state pension this month - including how, due to frozen income tax thresholds, more pensioners will be dragged into paying income tax. Chris seems to be one of those impacted...

I deferred taking my state pension for five years to hopefully boost my pension, because I happened to be the last group of people to get the old state pension. Unfortunately because of the tax band freeze any benefit from the pension uplift is being eroded every year, is this fair? Chris

And finally, on Monday we suggested a cheaper way to buy herbs and spices in the supermarket - by using the world food aisle...

We had this comment...

Best money-saving practice for herbs and spices is to source them at Asian stores - not supermarkets! Pip

Spain is planning to scrap a "golden visa" scheme that grants residency rights to foreigners who make large investments in real estate.

Ending the scheme would help make access to affordable housing "a right instead of a speculative business", Spanish Prime Minister Pedro Sanchez said.

The programme awards non-EU citizens investing at least €500,000 (around £429,000) in Spanish real estate - without taking out a mortgage - a special permit, allowing them to live and work in the country for three years.

In better news for Britons who hope to live abroad, Italy is allowing non-EU citizens who can work remotely to apply for a year-long "digital nomad" visa.

There's a few salary/reference based criteria to meet - read about them here...

Labour this week tried to address questions over how it would pay for key pledges  after the Tories used their idea of scrapping the non-dom status to fund a national insurance cut.

Labour had been committed to abolishing non-dom status for years - upon gaining power they planned to use the money to fund breakfast clubs for primary school children and additional appointments in the NHS.

Shadow chancellor Rachel Reeves this week announced the party's plan to raise £5bn a year by the end of the next parliament...

• Labour said it would raise £2.6bn by closing "loopholes" in the government's non-doms plan - after certain exemptions were kept in place by Jeremy Hunt;
• Labour said the "tax gap" - the difference between the amount of money HMRC is owed and the amount it receives - had widened to £36bn in 2021-22 - £5bn more than it had been the previous year;
• To close the gap, Labour said it would invest up to £555m a year in boosting the number of compliance officers at HMRC, increasing productivity and improving the organisation's "dire" customer service;
• It would also consider requiring more tax schemes to be registered with HMRC to ensure they are legitimate, and renew the focus on offshore tax compliance.

The government responded by saying: "The Conservatives have introduced over 200 measures to clamp down on tax non-compliance and we are sticking to the plan to strengthen the economy so we can cut taxes, putting £900 in the pockets of the average worker and helping families to build a brighter future."

Shell is weighing up quitting the London Stock Exchange (LSE) for a move to New York over concerns its listing is currently "undervalued".

Chief executive Wael Sawan  told Bloomberg  that he was mulling "all options".

The British oil and gas giant is currently the largest company in the FTSE 100 index, and its departure from the LSE would be a significant blow to the UK stock market that is fighting to stay relevant.

There's been a run of bad news for the LSE over the past year or so. The world's largest building products manufacturer, CRH, moved to New York, while travel company Tui moved to Frankfurt. And despite the lobbying of numerous prime ministers, UK-based chip company Arm chose the NYSE.

The Money blog is your place for consumer news, economic analysis and everything you need to know about the cost of living - bookmark news.sky.com/money.

It runs with live updates every weekday - while on Saturdays we scale back and offer you a selection of weekend reads.

Check them out this morning and we'll be back on Monday with rolling news and features.

The Money team is Emily Mee, Bhvishya Patel, Jess Sharp, Katie Williams, Brad Young and Ollie Cooper, with sub-editing by Isobel Souster. The blog is edited by Jimmy Rice.

UK lenders have seen a rise in defaults on mortgages and credit cards - with the trend expected to continue in the coming months, according to a survey.

A poll of banks and building societies by the Bank of England reveals lenders reported higher default rates on secured loans and unsecured lending in the three months to the end of February.

The rates for mortgages, credit cards and other loans, as well as loans to small to medium businesses, are all expected to rise in the next quarter.

The BoE carries out the survey every quarter as part of its role to maintain financial stability.

It also revealed increased demand for borrowing, with this also expected to climb during the three months to the end of May.

Karim Haji, global and UK head of financial services at KPMG, said the latest BoE data suggests "a more positive economic outlook hasn't fed through to household finances yet".

"Defaults across all unsecured lending increasing over the same three-month period indicates many people are still struggling to meet their day-to-day costs. Lenders will need to be vigilant and continue to offer support for borrowers in the interim," he said.

By  Sarah Taaffe-Maguire , business reporter

Poor software and bias toward making only small, sequential changes is one of the reasons economic forecasters at the Bank of England failed to predict and prepare for the cost of living crisis, brought about by high inflation, according to a "once in a generation" review.

The review announced last year was undertaken by the former head of the US central bank, known as the Fed, and said the quality of the Bank's economic expectations "deteriorated significantly in the past few years" due to out of date software and "excessive incrementalism".

Though the "unusually large forecasting errors" were said to be "probably inevitable", according to the review, conducted by Dr Ben Bernanke.

The problem was not unique to the Bank, rather something all central banks and private forecasters suffered from, it said.

Read the full story here...

After the UK airports with the worst delays were revealed earlier today (see post at 1.15pm), we've been looking at your rights.

If you're unlucky enough to get stuck at an airport due to a flight delay, you may wonder if you're entitled to any compensation.

The good news is you may be - in certain circumstances.

First, it's important to know what flights are covered by consumer law. These are: 

• Any flight leaving a UK airport
• Flights operated by a UK/EU airline arriving at a UK airport
• Flights operated by a UK airline only arriving at an EU airport

When will I be entitled to help? 

You'll qualify for support if a short-haul flight under 932 miles (1,500km) is pushed back by two hours. 

This rises to three hours for journeys up to 2,175 miles (3,500km).

For long-haul flights going any further than this, four hours or longer counts as a significant delay.

What support will I get?

Under UK law, airlines must give passengers who are affected by a delay of at least two hours:

• A reasonable amount of food and drink (usually provided in the form of vouchers)
• Refunds for the cost of two free phone calls, faxes or emails
• Accommodation for passengers stranded overnight (usually in a nearby hotel)
• Transport to a hotel - or their home

Will I get compensation?

Usually, airlines have to provide compensation if a person's flight arrives more than three hours late.

The exception to this is when there are air traffic control problems or extreme weather, as these issues aren't their fault.

If you agree to travel on a later flight, the airline is no longer obliged to offer food, drink or accommodation while you wait.

Thankfully, you are entitled to a full refund if you decide to abandon your journey after five hours of delays.

The length of your flight affects how much you are entitled to:

• Short-haul flight - £220
• Medium-haul flight - £350
• Long-haul flight - £520 if the flight arrived more than four hours late, £260 for a delay of between three to four hours

What if I'm about to travel?

Transfer passengers who end up missing a connecting flight because their first plane was delayed are entitled to a service back to their original departure point.

But things get a little more complicated for passengers on package holidays - especially if they decide not to travel on a delayed outbound flight.

The CAA's guidance says: "You may lose your holiday too, so we recommend you contact your package organiser or the airline for further information.

"If you still want to travel then your airline must get you to your destination. You might have to be patient while they rearrange transport and rebook passengers, but the law says they must get you there."

What if my flight is cancelled? 

You're entitled to a refund or replacement flight if yours is cancelled. Your rights to assistance are the same as if your flight is delayed.

If the reason for the cancellation was within the airline's control, and it was made with no more than 14 days' notice, then depending on the timings of the new flight offered you could also be entitled to compensation.

You'll be able to claim £110 and £520 depending on the length of the route and timings of the new flight.

Drivers are still feeling the strain of rising insurance premiums - but there are signs of a slowdown, according to one index.

New figures from insights firm Consumer Intelligence suggest the average quoted price of car insurance rose by 56.4% in the year to February.

This was the third-highest annual increase since its records began in 2012 - but in slightly better news for motorists, it marked a lower annual rise than the 67.2% recorded in November.

And there was only a slight rise of 0.5% when looking at the three months to February - the lowest quarterly increased since November 2021.

Drivers most commonly received a quote between £500 and £749 in February, Consumer Intelligence said. It analysed the average of the five cheapest offers from price comparison websites.

Max Thompson, the firm's insurance insight manager, said big insurance brands made "competitive movements" to reduce premiums at the start of the year.

"However, some of this was unwound in February indicating it may have been more of a tactical move than a long-term trend," he added.

Jonathan Fong, manager of general insurance policy at the Association of British Insurers, said insurers were "aware of the financial challenges customers are facing" and were working to keep prices affordable.

"Our motor premium tracker is the only collection based on the price customers pay for their policy, rather than quotes, and shows that the average motor premium increased by 25% last year to £543.

"This was largely driven by above inflation increases in the cost of repairs, thefts and replacement cars."

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